ADB committed to make an equity investment of up to $17.5 million in Aureos South Asia Fund (the Fund), or 25% of the Fund's total share capital, whichever is less. The Fund was to provide financing to small- and medium-sized enterprises in India, Sri Lanka and Bangladesh.
|Project Name||REG: AUREOS SOUTH ASIA FUND|
|Borrower/Company||AUREOS SOUTH ASIA FUND, LLC
|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 an equity investment of up to $17.5 million in Aureos South Asia Fund (the Fund), or 25% of the Fund's total share capital, whichever is less. The Fund was to provide financing to small- and medium-sized enterprises in India, Sri Lanka and Bangladesh.|
|Objectives and Scope||The Fund provides financing to SMEs that demonstrate potential for above-average growth rates and the capability to expand regionally, with the objective of earning a risk-adjusted return over 3 to 5 years. The specific target for investments are SMEs in South Asia primarily India, Sri Lanka and Bangladesh.|
|Status of Development Objectives||By providing financing for this transaction, ADB will achieve the following development objectives: (i) mobilize long-term capital in the form of private equity for SMEs in South Asia; (ii) diversify the sources of finance available to SMEs; (iii) demonstrate to the private sector that investment in entrepreneurial SMEs in South Asia can be commercially attractive; (iv) provide management advice to SMEs in financial planning, business expansion strategies, human resources development, and implementation of international standards of corporate governance; (v) create sustainable employment in the SME sector in South Asia; (vi) stimulate private sector development; and (vii) support the development and growth of South Asia's private equity and portfolio management professionals.|
|Linkage to Country/Regional Strategy||ADB's investment in the Fund is consistent with the country strategy and program, and complementary to ADB initiatives. It will directly contribute to mobilizing resources and improving financial intermediation and investment in private sector projects. ADB's equity financing of SMEs is part of a comprehensive approach by ADB, through policy dialogue, to improve the local regulatory and legal environment for SMEs and the private equity industry as well as the efficiency of the financial sector.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||All companies in which the Fund invests will be required to comply with national environmental laws and regulations as well as ADB's environmental and social safeguard policies. Aureos has established clear guidelines, processes, and principles for environmental, social, and health and safety issues that are integrated throughout the investment process. The Fund had developed an environmental management system, and is committed to its implementation.|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||30 Sep 2005|
|Credit Committee Meeting||22 Mar 2006|
|Approval||08 Jun 2006|
|PDS Creation Date||20 Mar 2006|
|Last PDS Update||27 Sep 2018|
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 Access to Information Policy (AIP) 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.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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
None currently available.
None currently available.
The Access to Information Policy (AIP) 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.
Requests for information may also be directed to the InfoUnit.