DARP ADM II (IFC-37982)

Regions
  • East Asia and Pacific
Where the impacts of the investment may be experienced.
Countries
  • China
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Apr 30, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ADM CAPITAL
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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
  • International Finance Corporation (IFC)

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.

Private Actors

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

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/