REG: AUREOS SOUTH ASIA FUND
|Project Name||REG: AUREOS SOUTH ASIA FUND|
|Borrower/Company||AUREOS SOUTH ASIA FUND, LLC
|Location||India, Sri Lanka, Bangladesh|
|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||Private Sector Investment Funds & Special Initiatives Div|
|Responsible ADB Officer||Pacifico, Catherine C.|
|Project Sponsor(s)||Aureos South Asia Managers Limited
|Description||REG: AUREOS SOUTH ASIA FUND|
|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. Investments include expansion, management buyout, restructuring, change of control transaction, consolidation and several investments in start-up and early stage companies.|
|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 a 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.|
|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.|
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|
|Due Diligence||27 Jan 2006|
|Credit Committee Meeting||22 Mar 2006|
|Approval||08 Jun 2006|
|PDS Creation Date||20 Mar 2006|
|Last PDS Update||30 Sep 2014|
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