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Myanmar: Ascent Myanmar Growth Fund I L.P.

Nonsovereign (Private) Project | 52180-001 Status: Active

An equity investment of up to $10 million in Ascent Myanmar Growth Fund L.P. (_AMGF_), a targeted $100 million Myanmar-focused private equity fund.

Project Details

Project Officer
Teo, Yee Hean Private Sector Operations Department Request for information
  • Myanmar
  • Finance
Project Name Ascent Myanmar Growth Fund I L.P.
Project Number 52180-001
Borrower/Company Ascent Myanmar Growth Fund I L.P.
Country Myanmar
Location Nation-wide
Type or Modality of Assistance
7581 Equity Ordinary capital resources USD 10.00 million Committed
Strategic Agendas Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Private Sector Investment Funds & Special Initiatives Div
Responsible ADB Officer Teo, Yee Hean
Project Sponsor(s)
Description An equity investment of up to $10 million in Ascent Myanmar Growth Fund L.P. (_AMGF_), a targeted $100 million Myanmar-focused private equity fund.
Objectives and Scope The fund will invest primarily equity capital for growth purposes in middle-market companies, including small and medium-sized enterprises (SMEs), operating in Myanmar. Focus sectors include consumer, education, financial services, health care, and technology, media and telecommunications. Investing in AMGF will allow the Asian Development Bank (ADB) to contribute to Myanmar's economic growth while providing development benefits, including supporting female entrepreneurs. The proposed investment will help deepen capital markets in Myanmar by providing scarce growth equity capital to Myanmar's middle-market companies, including SMEs. Moreover, ADB's investment is expected to catalyze private sector investment into Myanmar and encourage international best practices of investment.
Linkage to Country/Regional Strategy The proposed investment is consistent with ADB's country partnership strategy for Myanmar, 2017-2021, which focuses on: (i) improving Myanmar's access and connectivity to regional and global markets; and (ii) promoting structural and institutional reform to support the modernization of Myanmar's economy. ADB's country partnership strategy also emphasizes developing Myanmar's private sector by (i) improving infrastructure and connectivity and (ii) strengthening the country's financial sector.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects AMGF's likely future portfolio is not expected to require major infrastructure development or generate significant, adverse, irreversible or diverse environmental and social impacts or risks. An environmental and social management system (ESMS) with adequate procedures and requirements for screening, assessing, reviewing, implementing and monitoring investments will be adopted by the Fund before ADB's first disbursement. ADB provided guidance to AMGF in developing a Myanmar-focused ESMS. The initial screening procedure involves screening of possible investments against an exclusion list which is based on ADB's Prohibited Investment Activities List. Each potential investment will undergo screening, categorization, and assessment procedures guided by ADB's SPS requirement. Potential investments assessed as category A for environment will be excluded. AMFG's regular reporting to ADB will include information on investees' compliance with the ESMS, ADB's SPS, applicable national laws and regulations and good international industry practices. ADB will have an excuse right not to contribute capital to any investment that ADB determines was not appraised in accordance with the ESMS requirements.
Involuntary Resettlement ADB proceeds will not be used to fund business activities that will have involuntary resettlement impacts. Business activities of potential investees that will require land acquisition will not resort to government expropriation and all transactions will be on commercial terms by negotiated agreement on a willing buyer-willing seller basis. The Fund's ESMS has an adequate procedure to screen investee's business activity for potential involuntary resettlement impacts, consistent with ADB Safeguards Policy Statement (2009).
Indigenous Peoples Business activities of potential fund investees are not expected to adversely or beneficially affect distinct and vulnerable Indigenous Peoples (ethnic groups) in Myanmar. However, ADB does not limit AMGF from investing in companies that can potentially provide positive benefits to ethnic groups. The ESMS has an adequate procedure to screen investee business activity for potential impacts on distinct and vulnerable ethnic groups and measures to ensure planned benefits can be achieved.
Stakeholder Communication, Participation, and Consultation The commercial nature of fund investments limits AMGF's opportunities for stakeholder engagement and fund-level participation plan is not a requirement. Nevertheless, investees' business activities that are required to conduct consultation will be carried out in accordance with applicable national laws and regulations and the Safeguard Policy Statement of the Asian Development Bank. The ESMS will also contain requirements, as applicable, for information disclosure and consultation with affected people in accordance with ADB requirements.
Timetable for assistance design, processing and implementation
Concept Clearance 27 Jul 2018
Credit Committee Meeting 30 Oct 2018
Approval 11 Dec 2018
Last PDS Update 06 Apr 2021

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
Ascent Myanmar Growth Fund L.P.: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2018
Ascent Myanmar Growth Fund I L.P.: Gender Action Plan Gender Action Plans Nov 2018
Ascent Myanmar Growth Fund I L.P.: Report and Recommendation of the President Reports and Recommendations of the President Nov 2018

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

None currently available.

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