DCG Vietnam Debt Fund C (IFC-42623)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
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
B
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
Dec 14, 2020
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
DRAGON CAPITAL GROUP LIMITED
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.
Loan 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)
$ 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 19, 2024

Disclosed by Bank Apr 15, 2020

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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.

According to the bank document, "the proposed investment comprises of a 5-year senior loan of up to US$50 million to be extended to Vietnam Debt Fund Segregated Portfolio C (“VDeF C” or the “Fund”), a segregated portfolio to be established by Vietnam Debt Fund SPC (“VDeF SPC”), a subsidiary of Dragon Capital Group Limited (“DCG” or the “Sponsor”).

VDeF SPC currently holds two portfolios concentrating on investments in corporate bonds issued by Vietnamese mid and large size private companies. VDeF C will be established with $20 million of equity from DCG itself. In addition to the senior loan, IFC will mobilize up to US$30 million from other investors to the Fund. Through the investment, IFC will support a reputable fund management group with strong in-house capacity to assess Vietnamese local businesses, in contributing to the demand side of the market and facilitate expansion of the supply side through its work with first-time issuers.

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

Vietnam Debt Fund SPC is an investment holding segregated portfolio company incorporated in the Cayman Islands, and a fully-owned subsidiary of Dragon Capital Group Limited (“DCG”). It currently holds two segregated fixed-income portfolios on behalf of itself and investors, VDeF A and VDeF B, with total of US$92 million AUM (31 December 2019), managed by DCG’s subsidiary Dragon Capital Management (HK) Limited. The portfolios invest in VND denominated debt obligations owed or guaranteed by the Government, Vietnamese provincial governments and municipal authorities, state-owned enterprises and private-owned companies.

DCG is the holding company for an institutional-grade group (the “Group”) which has been managing foreign assets in Vietnam since 1994 and is an independent asset manager with approximately US$3 bn (as of 31 December 2019) under management, invested in listed equity, clean-tech, fixed income and real estate, managed on behalf of international pension, sovereign wealth funds and endowments. The Group is the biggest player in terms of investment value for Vietnamese listed equity after the Government of Vietnam. It operates out of offices in Ho Chi Minh City, Hanoi, Hong Kong, Bangkok and the UK. The Group’s funds focus has been primarily in Vietnam while it also manages a strategic proprietary equity portfolio invested in various companies across the South East Asia region.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Dragon Capital Group Limited Parent Company -
- - - - Vietnam Debt Fund SPC Client -

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.

1/ The Project Contact

Dragon Capital Group Limited
Ms. Quyen Duong Do
Head of Private Capital
+84 28 3823 9355
quyenduong@dragoncapital.com
1501 Me Linh Point 2 Ngo Duc Ke Street, District 1, Ho Chi Minh City, Vietnam
www.dragoncapital.com

2/ IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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/

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How it works