Regional : REG: AUREOS SOUTH ASIA FUND

Nonsovereign Project | 39931-014

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 Details

  • Project Officer
    Pacifico, Catherine C.
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Regional
  • Modality
  • Sector
    • Finance
Project Name REG: AUREOS SOUTH ASIA FUND
Project Number 39931-014
Borrower / Company AUREOS SOUTH ASIA FUND, LLC
Country / Economy Regional
Location Regional
Type or Modality of Assistance
7233 Other USD 17.50 million Approved
Strategic Agendas Environmentally sustainable growth
Regional integration
Drivers of Change Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds
Gender
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Pacifico, Catherine C.
Project Sponsor(s)
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.
Safeguard Categories
Environment FI
Involuntary Resettlement C
Indigenous Peoples C
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.
Involuntary Resettlement
Indigenous Peoples
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.

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Title Document Type Document Date
Proposed Equity Investment Aureos South Asia Fund 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

None currently available.

Related Publications

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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.

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