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| VI (Vietnam Investments) Fund I, L.P. |
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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 | 26662 |
| Company name | Vietnam Investments Fund I, L.P. |
| Country | Vietnam |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Active |
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| Date SPI disclosed | December 19, 2007 |
| Projected board date | February 14, 2008 |
| Previous Events | Invested: September 30, 2008
Signed: June 24, 2008
Approved: March 28, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Vietnam Investments Fund I, L.P. (VI I or the Fund) is a seven-year closed-end private equity fund formed by the Vietnam Investments Group (VI Group or the Manager), which is seeking up to $100 million in capital commitments to make equity and equity-linked investments in private companies as well as the privatization of State-Owned Enterprises (SOEs) in Vietnam. |
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| Project sponsor and major shareholders of project company |
| The VI Group comprises 10 Vietnamese investment professionals led by David Do and Phan Thanh Loc, who have extensive experiences as entrepreneurs, investors as well as company operators within Vietnam and internationally. The Manager is actively recruiting a third Managing Director with strong local deal sourcing and execution capabilities. In addition, it has established a Board of Advisors consisting of notable industry experts in Vietnam. |
| Total project cost and amount and nature of IFC's investment |
| IFC proposes to make an equity investment of up to $15 million, not to exceed 20% of the Fund’s total commitments. Additionally, IFC will not be the single largest investor in VI I. |
| Location of project and description of site |
| VI I is formed as a Cayman Islands exempted limited partnership. The Manager currently maintains offices in George Town, Cayman Islands and Ho Chi Minh City, Vietnam. |
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| Anticipated development impact of the project |
An IFC investment in VI I is expected to deliver the following development impact:
- Stimulate private sector growth – the Fund is expected to expand access to financing by private enterprises (including SMEs) and promote SOE privatization in Vietnam.
- Improve corporate governance – the Fund is expected to help portfolio companies adopt better practices in corporate governance, environmental and social standards.
- Develop non-bank financial institutions – the Fund, if successful, will prove the viability of private equity as an asset class in Vietnam and encourage more private equity funds to be established in the country. |
| IFC's expected development contribution |
IFC’s expected development contribution includes:
- Capital mobilization – IFC’s commitment will help a first-time fund attract capital and reach a critical fund size.
- Governance oversight – IFC expects to have a seat on the Fund’s Advisory Committee and to play an active role in ensuring the Fund adopts best practice fund management and governance. |
| 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, 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,
- Take action to remedy any gaps in SEMS implementation on an ongoing basis, and
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. David Do, Managing Director
The VI Group
Ugland House, South Church St
George Town, Grand Cayman, Cayman Islands
Or
1/F, Saigon Co-op Building
253 Dien Bien Phu Street, District 3
Ho Chi Minh City, Vietnam |
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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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