28746 - ADM CEECAT Recovery Fund

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Summary of Proposed Investment

Project Number

28746

Company Name

ADM CAPITAL SOMEI LENDING PLATFORM LIMITED

Date SPI Disclosed

Dec 4, 2009

Country

Southern Europe Subregion

Industry

Funds

Projected Board Date

Jan 7, 2010

Status

Active

Sector

Other Funds

Department

Regional Industry FIG LAC & EUR

Environmental Category

Previous Events

Approved : Feb 25, 2010
Signed : Mar 29, 2010
Invested : May 7, 2010

Project Description

IFC is considering an investment in a new recovery fund for Central and Eastern Europe, Central Asia and Turkey (“CEECAT”), to be called ADM CEECAT Recovery Fund (the “Fund”). The Fund would invest in single asset recovery situations, targeting small and mid cap companies with liquidity needs that have strong fundamentals and that can survive the crisis. The Fund would extend secured loans to companies in difficulty raising new financing and also obtain equity stakes in the businesses. The investments are to be made after reaching a common understanding with shareholders and other creditors on a recovery plan.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	47.55

Development Impact

Investing in distressed assets with the aim of corporate recovery has a high development impact. Distressed companies that receive liquidity get the opportunity to de-leverage or restructure their balance sheets, induce managerial and operational improvements and become economically viable again. ADM Capital views the improvement of corporate governance and transparency of investee companies as a key element in the recovery process, therefore IFC’s investment in the Fund will enable IFC to support better management of small and mid cap companies in the ECA region.

IFC’s additionality in this Fund would be significant. While ADM Capital is an established player in the distressed assets arena, its regional focus has historically been in Asia and Turkey. The proposed Fund represents a relatively new region of operation for ADM Capital with the exception of Turkey, therefore it would benefit greatly from a close relationship with IFC which has extensive coverage of the ECA region. In addition, fundraising is difficult in the current environment; therefore IFC’s involvement as an anchor investor will greatly help in achieving a successful closing of the Fund.

For this Category FI project, IFC''s appraisal will focus on ADM Capital''s capacity to implement a Social & Environmental Management System (SEMS) and manage S&E risks associated with potential investees. Particular focus will be given to collateral assessments to ensure the absence of environmental liabilities, requirements to include S&E considerations in recovery plans, and the Sponsor’s past experience with implementing an SEMS. IFC will review ADM Capital''s existing S&E procedures and project due diligence to determine if ADM Capital''s SEMS requires enhancement. If considered necessary, ADM Capital will be required to ensure the enhancements are made as a condition of IFC''s commitment. ADM Capital''s SEMS will be expected to screen against the IFC exclusion list, host country laws and the Performance Standards. ADM Capital will be required to ensure adequate capacity to implement the SEMS.

Contacts

For Inquiries About the Project, Contact

Anthony Stalker Partner ADM Capital Europe LLP 22 Upper Brook Street London W1K 7PZ United Kingdom T: +44 20 7529 5008 F: +44 20 7529 5070 E: anthony.stalker@admcap.com http://www.admcap.com/

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: 202-974-4384E Mail: Webmaster

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. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. 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 Policy on Disclosure of Information that went into effect April 30, 2006.

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.

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