DARP ADM II (IFC-37982)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
China, Thailand, Indonesia, Vietnam, India, Mongolia, Sri Lanka and Cambodia
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 30, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ADM CAPITAL
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 24, 2018

Disclosed by Bank Mar 30, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The proposed project, ADM Capital Somei Lending Platform (the “Facility”), aims to set up a lending facility platform that will invest in medium sized companies in Asia, targeting stressed, turnaround and growth investments. The Facility would extend loans to companies with strong fundamentals but facing difficulty raising new financing due to financial imbalances, inability to access conventional bank financing avenues, or track record challenges. The objective of the Facility would be to provide funding to otherwise sound companies and position them for growth.

Expected Development Impact
- Private sector support: The platform would enable stressed or growth Asian companies to obtain funding with terms that allow them to recover, rehabilitate or grow. Currently, local bank financing is limited to this type of debtors. The inability to access liquidity/growth funding or (re)financing capital could drive stressed companies, mostly medium enterprises (MEs), to become NPAs or, for growth companies, prevent creation of productive enterprises.
- Job creation: Apart from special situations investments that save jobs, Somei will also invest in growth companies, which in their expansion will support and may create jobs that would support economic growth.
- Market setting: The project would lay the foundation for the development of an effective stressed investment and credit solution culture which, in turn, may contribute to the stabilization of Asian financial systems and private sector development in the target countries, i.e., Philippines, Indonesia, Thailand, China, Vietnam, India, Cambodia, Sri Lanka. It would further promote international best practices in terms of stressed and growth investing, servicing and exit.
- Medium enterprises rehabilitation and support: The Facility would contribute to the recovery of MEs that have been unable to honor their debts due to financial difficulties and to the creation of MEs through growth funding.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Facility will be established by Asia Debt Management Hong Kong Limited (“ADM Capital” or the “Sponsor”). ADM Capital will act as the Facility agent to source, structure, execute, and supervise the investments made under the Facility. Founded in 1996, ADM Capital is a leading credit specialist investment manager focusing on long term capital appreciation by responsibly investing in deep credit opportunities (including distressed, stressed, special situations and growth investments) across Asia and Central and Eastern Europe. ADM has an established track record of over 18 years in providing financing for mid-size companies and those with no access to financing through traditional channels.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

ADM Capital will act as the Facility agent to source, structure, execute, and supervise the investments made under the Facility. Founded in 1996, ADM Capital is a leading credit specialist investment manager focusing on long term capital appreciation by responsibly investing in deep credit opportunities (including distressed, stressed, special situations and growth investments) across Asia and Central and Eastern Europe. ADM has an established track record of over 18 years in providing financing for mid-size companies and those with no access to financing through traditional channels.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Asia Debt Management Hong Kong Limited
1008 ICBC Tower, 3 Garden Road,
Central, Hong Kong
Tel: +852 2536 4567
Fax: +852 2147 2813
Email: admir@admcap.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works