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 Name||Ascent Myanmar Growth Fund I L.P.|
|Borrower/Company||Ascent Myanmar Growth Fund I L.P.
|Type or Modality of Assistance||
|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|
|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.|
|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.
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.
|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.
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.
ADB, Ascent Capital's Equity Investment Deal to Provide Growth Capital to Private Enterprises in MyanmarADB signed an agreement on 21 December 2018 to provide a $10 million equity investment to AMGF, a Myanmar-focused private equity fund, to provide much-needed capital investment for the growth and expansion of SMEs operating...