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| Cambodia Laos Development Fund |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27484 |
| Company name | Cambodia-Laos Development Fund, S.C.A. |
| Country |
| East Asia and Pacific Region | (IDA) |
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| Sector | Private Equity/Venture Cap Fund - Regional |
| Environmental category | FI |
| Department | Reg Ind, Financial Markets, ASIA |
| Status | Active |
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| Date SPI disclosed | April 23, 2009 |
| Projected board date | May 31, 2009 |
| Previous Events | Invested: March 22, 2010
Signed: September 30, 2009
Approved: June 30, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Cambodia-Laos Development Fund (the Fund) is a proposed private equity fund that will make equity and equity-related investments in small and medium-sized enterprises (SMEs) in Cambodia and Lao People’s Democratic Republic (Laos). The Fund will invest in SMEs across multiple sectors with a preliminary early focus on business services, agribusiness, and microfinance.
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| Project sponsor and major shareholders of project company |
The Fund will be managed by the Emerging Markets Investments Pte. Ltd (EMI) in technical partnership with Aureos Capital Limited (Aureos). EMI is a wholly-owned subsidiary of Emerging Markets Group Holding, a Singapore-registered company whose shareholders have together managed a consulting firm founded in 2004 which provides business consulting services to companies and donor agencies in Cambodia and Laos. Aureos, established in 2001, is a private equity group which focuses on investing in medium-sized enterprises in emerging markets. |
| Total project cost and amount and nature of IFC's investment |
| It is proposed that IFC invest up to $4 million. |
| Location of project and description of site |
| The Fund will be established in Luxembourg and the fund manager will be registered in Singapore. The management team will be based in Phnom Penh, Cambodia with support from its affiliated consulting company in Vientiane, Laos. |
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| Anticipated development impact of the project |
- Private sector development: The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.
- Implementation of best practice for corporate governance in portfolio companies: The Fund will adopt international best practices for corporate governance and management, as well as transparency, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.
- Support for SMEs: The Fund is expected to invest predominantly in SMEs. |
| IFC's expected development contribution |
- Catalyze other funding from foreign institutional and private capital: IFC’s participation will provide comfort to other investors and broaden the Fund’s investor base for successful first and subsequent closings.
- Support an emerging fund manager: IFC will support the development of the local private equity industry by supporting a first-time fund manager.
- Fund structuring role: IFC will provide input to ensure the Fund is structured according to international best practice.
- Institution-building role in fund operations and governance: IFC will play a governance role through participation on the Fund’s Advisory Committee. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:
- The IFC FI Exclusion List and/or
- The applicable National Social and Environmental Laws and regulations and/or
- The IFC Performance Standards
IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.
The fund manager will be required to:
- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.
IFC will review the implementation and performance of the Fund’s SEMS for the first few projects, prior to the Fund’s investment, to ensure that the Fund’s SEMS is robust. |
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| For inquiries about the project, contact: |
Joshua Morris
Managing Director, Emerging Market Investments
Tel: +855 (23) 221890
Level 2, The Hong Kong Centre
Sothearos Blvd
Phnom Penh
Kingdom of Cambodia |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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