MICROCAPITAL BRIEF: ADB to Place $25m in Equity in Exacta Asia Investment II for Loans to SMEs in ASEAN Region

The Asian Development Bank (ADB) recently agreed to make an equity investment of USD 25 million into Exacta Asia Investment II LP, a private equity fund, to support its lending to small and medium-sized enterprises (SMEs) in Southeast Asia, particularly in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. The investment is intended to “address the issues of low private equity penetration in Southeast Asia…to create new jobs, drive economic growth, and encourage further investments in related sectors.” Exacta II invests in SMEs in the manufacturing, technology and service sectors. The fund achieved its first close in 2017 at a volume of USD 180 million, including USD 89 million from Japan’s Mizuho Bank. the fund has a total target size of USD 250 million.

ADB was established in 1966 and is based in the Philippines. Its goal is to eradicate poverty in the Asia-Pacific region. ADB is owned by 67 countries, of which 48 are located in the region. For 2017, the organization had a total budget of USD 32.2 billion, including USD 11.9 billion in co-financing.

By Michelle Fleming, Research Associate

Sources and Additional Resources

ADB press release
https://www.adb.org/news/adb-invests-25-million-private-equity-fund-help-small-businesses-southeast-asia

ADB homepage
https://www.adb.org

Mizuho Bank press release on launch of Exacta II
https://www.mizuhobank.com/company/release/pdf/20170915release_eng.pdf

MICROCAPITAL BRIEF: Asian Development Bank (ADB) Lending $300m to Filipino Government for Infrastructure Supporting Financial Services in the Philippines
https://www.microcapital.org/microcapital-brief-asian-development-bank-adb-lending-300m-to-filipino-government-for-infrastructure-supporting-financial-services-in-the-philippines/

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