20926 - VEIL II

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

20926

Company Name

Vietnam Enterprise Investments Limited

Date SPI Disclosed

Apr 16, 2003

Country

Viet Nam

Industry

other

Projected Board Date

Jun 10, 2003

Status

Completed

Sector

Private Equity/Venture Cap Fund - Country

Department

TMT, Venture Capital & Funds

Environmental Category

Previous Events

Approved : Jun 11, 2003
Signed : Jun 20, 2003
Invested : Oct 24, 2003

Project Description

Vietnam Enterprise Investments Limited (VEIL, or the Fund) is a closed-end investment fund incorporated in the Cayman Islands and listed on the Irish Stock Exchange. The Fund has been operating since 1995. It has a capital base of $43.9 million and is managed by Dragon Capital Management Ltd., which is a subsidiary of Dragon Capital Group (DCG). Its investment objective is to invest in publicly or privately issued securities of Vietnamese companies, thereby providing impetus to the development of Vietnamese capital markets by increasing liquidity of Vietnamese securities. The Fund invests in a hybrid asset pool of listed, pre-listed, and unlisted securities and real estate.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	8.0

Development Impact

VEIL has been virtually the only foreign investor in Vietnamese privatizations. Following the proposed capital increase, the increase in the size of the Fund from $65 million to $105 million should invigorate the securities market. Furthermore, the professional approach and investment perspective of VEIL is expected to have a lasting impact on the Vietnamese market in terms of raising standards of securities research and portfolio analysis in Vietnam. Due to DCG’s complementary businesses of corporate finance and securities brokerage, it is also expected to bring to bear on the investee companies the discipline and perspective of an international institutional investor.

IFC’s equity participation in the Fund would support the Government’s financial markets reform initiatives by:

- supporting VEIL''s participation in the privatization process by strengthening its capital resources and;
- through IFC’s involvement, ensuring the implementation of good corporate governance and industry best practices in VEIL and DCG.

In addition, investment in VEIL will signal IFC''s confidence in the future of the Vietnamese market and revive sagging confidence of international institutional investors, thereby providing these investors with opportunities in a market into which they may be unwilling to invest directly.

With the demise of most of the dedicated country funds and the absence of any investment bank or broker being prepared to assist formally with placing, the difficulties of raising capital for Vietnam are compounded by global and regional economic downturn. IFC’s commitment to invest is likely to have a greater catalytic effect than if the environment were more benign. Further, through VEIL, IFC would be able to provide a vehicle for institutional investments into Vietnam.

Contacts

For Inquiries About the Project, Contact

John Shrimpton, Director
26 Ho Tung Mau Street, District 1
Ho Chi Minh City, Vietnam
Email: Johnshrimpton@dragoncapital.com

This Summary of Project Information (SPI) 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. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Environmental and Social Issues - Category

IFC's Role and Additionality

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer