ADB committed to make equity investment of up to US$20 million in Darby Asia Mezzanine Fund II, or 25% of the Fund's equity capital, whichever is less. The Fund will invest in mezzanine opportunities within Asia primarily in the People's Republic of China (PRC), India, Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand.
|Project Name||REG: DARBY ASIA MEZZANINE FUND II|
|Borrower/Company||DARBY ASIA MEZZANINE FUND II
|Type or Modality of Assistance||
|Strategic Agendas||Environmentally sustainable 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.|
|Description||ADB committed to make equity investment of up to US$20 million in Darby Asia Mezzanine Fund II, or 25% of the Fund's equity capital, whichever is less. The Fund will invest in mezzanine opportunities within Asia primarily in the People's Republic of China (PRC), India, Indonesia, Republic of Korea, Malaysia, Philippines, and Thailand.|
|Objectives and Scope||The primary goals for the Fund are to (i) help develop deeper and more liquid capital markets in ADB developing member countries (DMCs) through support of a nascent mezzanine asset class in the region; (ii) increase expansion capital financing to mid-market companies with significant emphasis on the infrastructure sector; and (iii) promote the growth and sustainability of Asia's emerging private equity markets by supporting their management team in expanding their investment operations.|
|Status of Development Objectives||By providing financing to the Fund, ADB would (i) support infrastructure projects in ADB's DMCs; (ii) support the continuing development of an underserved segment of the private equity industry; (iii) promote the development of deeper, more liquid, and more diversified capital markets in Asia; (iv) transfer and build mezzanin expertise in DMCs; (v) mobilize investment in the real economy; and (vi) support a proven fund manager to ensure the growth and sustainability of Asia's emerging private equity markets.|
|Linkage to Country/Regional Strategy||In implementing the country strategy and programs (CSPs), ADB's private sector operations must address the challenges of immature capital markets in ADB's DMCs, which has created a significant gap for infrastructure companies, as well as mid-market entrepreneurial companies seeking long-term finance. The resulting lack of long-term finance hampers private sector development, creating a unique opportunity for untapped asset classes such as mezzanine finance. ADB can catalyze entrepreneurial finance and foster the development of the private equity industry by supporting the development of a nascent asset class in ADB's DMCs.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The Fund Manager is developing an environmental policy and environmental management system (EMS) for the Fund in cooperation with ADB. No involuntary resettlement is foreseen in relation to any investments by the Fund. No investments by the Fund are expected to impact indigenous peoples.|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||04 Aug 2005|
|Credit Committee Meeting||04 Oct 2006|
|Approval||10 Nov 2006|
|PDS Creation Date||11 Dec 2006|
|Last PDS Update||29 Sep 2014|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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|Title||Document Type||Document Date|
|Darby Asia Mezzanine Fund II: Extended Annual Review Report||Extended Annual Review Reports||Sep 2015|
|Proposed Equity Investment Darby Asia Mezzanine Fund II||Reports and Recommendations of the President||Oct 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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None currently available.
The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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