The objective is to facilitate private equity investments in companies, entities or other arrangements in Emerging Asia, which generate attractive risk-adjusted returns and achieve high developmental impact. Key target markets include established markets (China, India), developing markets (such as Indonesia, Philippines), and frontier markets (such as Bangladesh, Cambodia, Myanmar, Sri Lanka and Viet Nam). The Bank will be excused from making an advance to the Fund for any proposed investment in a country that is not a member of the Bank.
Private equity funds can have a significant impact on company growth and job creation in emerging markets. Investing through private equity funds can: (i) have positive impacts on economic activity and promote job creation by providing capital and expertise to selected companies; (ii) promote the development of the private equity asset class in emerging markets; (iii) stimulate emerging areas (e.g. in renewable energy, infrastructure); and (iv) in the case of the Bank, broaden its reach to the region’s least developed countries. Each investment is intended to generate both financial returns and positive and measurable development impact.
The Fund is an Emerging Asia growth-focused private equity fund with a returns-driven strategy, selectively investing growth capital across multiple sectors with IFC over a five-year period. The Fund seeks to build a diversified portfolio of investments across Emerging Asia through geographic and industry diversification. The target sectors of the Fund are: (i) infrastructure; (ii) financial institutions; and (iii) manufacturing, agribusiness and services.
The Project is categorized FI, because the financing structure involves the provision of funds through a financial intermediary, whereby the Bank delegates the decision-making on the use of the Bank funds, including the selection, appraisal, approval and monitoring of investments. The Fund is a subsidiary of IFC and is required to follow IFC’s Policy on Environmental and Social Sustainability and Performance Standards in matters of environmental and social due diligence. The Fund will screen and categorize investments as Category A, B, C or FI, and review, conduct due diligence on, and monitor the environmental and social risks and impacts associated with the investments. IFC’s Policy and Performance Standards are consistent with the Bank’s Articles of Agreement, and materially consistent with the provisions of the Bank’s Environmental and Social Policy and relevant Environmental and Social Standards. Moreover, the monitoring procedures that IFC has in place to ascertain compliance with its Policy and Performance Standards are considered consistent with the Environmental and Social Policy of the Bank. The Fund will comply with the IFC Exclusion List as well as with limitations on financing fossil fuel power generation investments as described in the Bank’s Energy Sector Strategy. The Bank will monitor the environmental and social aspects of Fund investments in cooperation with IFC.
Asian Infrastructure Investment Bank
Rusu Lee
Senior Investment Officer
Shi Min Png
Investment Analyst
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