The Facility will be established by Asia Debt Management Hong Kong Limited (“ADM Capital” or the “Sponsor”). ADM Capital was established in 1998 in the wake of the Asian financial crisis to invest in distressed assets and recovery situations. It is an experienced player in the distressed assets arena with $1.7 billion assets under management and a focus on emerging markets. It manages three open-end and four closed-end funds. ADM Capital employs 48 people, operating from its headquarters in Hong Kong and offices in Beijing, Mumbai, London, Istanbul and Almaty.

The target size of the Facility would be up to $500 million with IFC providing an anchor investment capital of up to $75 million in debt and equity funding on the first closing, and the remainder being provided by co-investors/participants. ADM Capital is in discussions with other IFIs regarding potential participation.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
Equity	10.0

* These investment figures are indicative

The Facility would target small to mid cap companies in emerging markets in Asia.

By providing sound, but financially stressed, companies with access to financing which they would not otherwise be able to access using conventional banking avenues, the Facility would: i) support viable private sector companies; ii) save jobs; iii) increase efficiency; and iv) maintain productive asset utilization. Investing in stressed companies with the aim of corporate turnaround and recovery, has a high development impact in improving corporate governance and transparency of investee companies as well as inducing managerial and operational improvements required to restore viability to the investee company.

IFC’s additionality in this Facility would be significant and includes: i) IFC''s global reach and well-renowned experience in emerging markets will make a critical contribution in identifying and assessing investee companies and attracting new Facility commitments from IFI’s and other investors; ii) fundraising is difficult in the current environment after the recent credit crisis; accordingly, IFC''s involvement as an anchor investor is considered strategically important to achieve a successful closing of the Facility; and iii) structuring - IFC will play a key role in structuring the Facility.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. This project involves IFC support for the business of investing in distressed companies, and considering the nature of activities supported, applicable requirements are IFC’s Exclusion List, national laws and regulations in the countries where investments are made, and IFC’s Performance Standards. The project will be required to:

Develop a Social & Environmental management system/procedure relevant to its business process - prior to disbursement and satisfactory to IFC - that ensures that all its investments are screened and processed to meet applicable requirements;
Review information available in the public domain and avoid investments in sub-projects that have substantial unresolved social or environmental issues;
Commit to working with investees to ensure that the projects are operating in compliance with Applicable requirements, or have an action plan to achieve the same within a reasonable time frame;
Appoint a S&E officer responsible for oversight and implementation of the S&E management system;
Demonstrate commitment and resources to implementing the Social & Environmental management system/procedure, and take action to remedy any gaps in implementation on an ongoing basis; and
Submit a periodic report to IFC as per a format to be agreed with IFC.