39924-014: REG: AIF CAPITAL ASIA III | Asian Development Bank


Nonsovereign (Private) Project | 39924-014 Status: Archived

Project Details

Project Officer
Pacifico, Catherine C. Private Sector Operations Department Request for information
  • Regional
  • Finance
Project Number 39924-014
Country Regional
Location Regional
Type or Modality of Assistance
7230 Equity USD 30.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Pacifico, Catherine C.
Project Sponsor(s)
Objectives and Scope The Fund targets companies benefitting from Asia's economic growth, with a focus on two key trends: (i) further integration of Asia into global supply chain, and (ii) rising domestic demand driven by the emerging Asian middle class. The Fund focuses on an investment size of $10-50 million for influential minority expansion capital, buyouts, and special situation opportunities in companies with enterprise valuations of $50-500 million.
Status of Development Objectives The Fund will help promote the growth of the private equity industry in the middle market segment. It can increase the amount of bank lending to businesses by (a) injecting equity to improve the balance sheet and borrowing power of the portfolio company, and (b) completing separate due diligence on the business opportunity to address any concerns the bank may have on the viability. The Fund Manager's ability to add value in terms of instilling best practices in corporate governance creates a demonstration effect, in which the standards of a given industry are improved.
Linkage to Country/Regional Strategy ADB's country strategy for the People's Republic of China (PRC) recommends making markets work better by developing an enabling environment for the private sector; promoting good governance, the rule of law, and transparent regulation; supporting financial sector reforms; and expanding ADB's private sector operations. For India, ADB's country strategy and program 2003-2006 states that the private sector has a leading role to play in achieving growth targets. The strategy focuses on promoting an enabling environment for private sector development through (i) financial sector interventions to improve financial intermediation and resource mobilization; (ii) policy reforms to remove impediments to private investment-domestic and foreign; (iii) investment in public infrastructure, which also facilitates private investment; (iv) public-private partnerships; and (v) investments in private sector projects. For Indonesia, the country strategy and program (2002-2005) highlights the role of business investment in accelerating Indonesia's growth path and pays special attention to fostering a vibrant and competitive private sector.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The Fund Manager already possesses experience with respect to adhering to ADB's social and environmental safeguard policies through its existing funds. The Fund Manager has adopted an environment management system.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
Timetable for assistance design, processing and implementation
Concept Clearance 04 Aug 2005
Credit Committee Meeting 11 Apr 2006
Approval 31 May 2006
PDS Creation Date 18 Jul 2006
Last PDS Update 29 Sep 2014

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Title Document Type Document Date
Proposed Equity Investment in AIF Capital Asia III Reports and Recommendations of the President Apr 2006

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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