Regional: Equity Investment in CreditAccess Asia
Equity investment of up to 45,000,000 in CreditAccess Asia (CAA) to provide growth capital to support CAA's pan-Asia microfinance operations.
Private Sector Operations Department
Request for information
21 February 2017
|Project Name||Equity Investment in CreditAccess Asia|
|Borrower/Company||CreditAccess Asia N.V.
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Private sector development
|Sector / Subsector||
Finance / Inclusive finance
|Gender Equity and Mainstreaming||Gender equity|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Doukidis, Doukas|
|Description||Equity investment of up to 45,000,000 in CreditAccess Asia (CAA) to provide growth capital to support CAA's pan-Asia microfinance operations.|
|Objectives and Scope||ADB approved an equity investment of up to EUR45mn to support CAA's pan-Asia microfinance operations. Of this, EUR30mn (US$37.4mn) was disbursed through the purchase of 4,016,871 shares at EUR7.4685 per share subscribed in March 2017 for a 10.86% (9.53% fully diluted) equity stake in CAA. As a result of the company's capital raising activities, ADB's shareholding has been reduced to 8.54% as of end-September 2018.|
|Linkage to Country/Regional Strategy||The Midterm Review of Strategy 2020 emphasizes ADB's support for the finance sector. The investment contributes to finance sector development by supporting the growth of an institution that is dedicated to delivering access to finance to the significantly unserved and underserved population in Asia. Without access to formal financial services, people with lower income or in underserved segments will be excluded from the growth process and its benefits. The proposed equity investment will support microfinance in India, Indonesia, the Philippines, and Vietnam. Microfinance is one of the financial infrastructures identified as a high priority for the governments of the target countries. The investment also aligns with ADB's country partnership strategies for India, Indonesia, the Philippines, and Vietnam; and with ADB's Gender Equality and Women s Empowerment Operational Plan, 2013-2020.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The potential environmental and social impacts of the proposed investments and associated risks of CAA and its subsidiaries' business activities have been assessed, and there are expected to be minimal or no adverse environmental impacts.|
|Involuntary Resettlement||Impacts on involuntary resettlement are unlikely.|
|Indigenous Peoples||Impacts on indigenous peoples are unlikely.|
|Stakeholder Communication, Participation, and Consultation||Key stakeholders comprise women borrowers of CAA's operating subsidiaries. This will be considered in setting project targets and indicators. CAA's operating subsidiaries partner with civil society organizations for the delivery of its non-financial services and corporate social responsibility activities.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||31 Aug 2016|
|Credit Committee Meeting||14 Dec 2016|
|Approval||21 Feb 2017|
|Last PDS Update||12 Jun 2019|
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|
|Equity Investment in CreditAccess Asia: Report and Recommendation of the President||Reports and Recommendations of the President||Jan 2017|
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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ADB, CAA Sign €30 Million Agreement to Improve Financial Inclusion in AsiaADB signed a €30 million ($32 million) equity investment agreement today with CreditAccess Asia (CAA), a holding company headquartered in Amsterdam, that operates microfinance institutions (MFIs) across Asia.