9th ADB Business Opportunities Fair

Thematic Opportunities: Private Sector

Operations
By: Kenji Yuhaku, PSOD

15 March 2018
KEY OBJECTIVE

• Private Sector Ops

• Seeks to identify
• commercially
• viable
without sovereign guarantees
• transactions generate attractive financial returns

promote environmentally sustainable

and inclusive economic growth
Key Sectors

Infrastructure & Finance & Health &

Natural Res Private Equity Agribusiness Education

Generation Access to finance Inputs (seeds, Suppliers

(particularly through financial irrigation, cold (pharmaceuticals,
renewables), intermediaries storage), farming medical
transmission, (rural, (crop, livestock, equipment),
distribution, microfinance, dairy), Providers
water/waste, M/SMEs, climate, processing (hospitals,
transport and inclusive business (grains, meats, clinics),
associated and gender packaging), distributors
services mainstreaming), distribution (pharmacies,
(airports/airlines, insurance, digital (wholesale/retail supply chain), e-
roads, finance, filling markets) health, and in
ports/shipping, market gaps via person and
logistics, trade and supply online education
rail/rolling stock), chain financing,
natural working through
resources private equity funds
(oil/gas, mining)
Project Approvals (2015-2017)
Central and West Asia South Asia East Asia
Armenia Bangladesh People’s Republic of China
n FINCA Bank n BRAC Bank n Western Counties Water and Wastewater Mgmt
n Electric Networks of Armenia n Eastern Bank Limited n SME Industrial Wastewater and Sludge Treatment
n Ameriabank n Reliance Bangladesh LNG and Power n CFPA Microfinance
n Yingda International Leasing for Healthcare Fin
Azerbaijan Bhutan n Sustainable Dairy Farming and Milk Safety
n AccessBank n Hazelnut Value Chain Development n Integrated Wastewater Management
n FINCA Bank n Inclusive and Sustainable Livestock Farming
n Shah Deniz Stage II Gas Field Expansion India n Urban and Rural Integration Water Distribution
n Shah Deniz Gas Field Expansion n IndusInd Bank n China Everbright Renewable Energy
n Shapoorji Affordable Housing n Minsheng Financial Leasing for Green Transport Fin
Georgia n Green Energy Corridor & Grid Strengthening n Environmentally Sustainable Agricultural Input
n TBC Bank n Mytrah Wind and Solar Power Development n Integrated Urban Water Management Project
n Credo Bank n Simpa Off-Grid Prepaid Solar Leasing n Geothermal District Heating Project
n FINCA Bank n RBL Bank
n PNB Housing Finance
Kazakhstan n JFS Limited Debt Financing South East Asia
n JSC Samruk Energy Restructuring n Au Financiers Limited Cambodia
and Transformation n ReNew Clean Energy n Cambodia Solar Power
n Satin Creditcare Network
Kyrgyz Republic n Capital First Indonesia
n Bai Tushum Bank n Kutch Wind Project n Tangguh LNG Expansion
n Cholamandalam Investment and Finance n Muarah Laboh Geothermal Power
n True North Fund VI n Eastern Indonesia Renewable Energy
Pakistan
n Engro Fast Track LNG Regasification
n 102 MW Gulpur Hydropower Sri Lanka Myanmar
n LOLC Finance and LOLC Micro Credit n Nationwide Telecommunications
n Triconboston Wind
n Hatton National Bank n Myingyan Natural Gas Power Plant
n Khushhali Bank
n Shipyard Rehabilitation and Infrastructure n Yangon Urban Renewal and District Cooling
n Zorlu Solar Power
n Telecommunication Towers Infrastructure
Year 2015 2016 2017
Pacific
Projects 27 26 29 Samoa Philippines
n Jarcon Pty Limited and Sun Pacific n Tiwi and MakBan Geothermal Climate Bonds
Volume ($MM) 2,626 2,502 3,150
n 150 MW Burgos Wind Farm
CWRD 580 601 280
Regional
EARD 325 325 740 Thailand
n Distributed Energy Storage Solutions
n 260 MW Northeastern Thailand Wind Power
PARD 0 0 2 n Microfinance Risk Part & Gty
n Distributed Commercial Solar Power
n Micro Credit Ratings International
SARD 924 865 1,047 n Grid-Parity Rooftop Solar
n Creador Fund III
SERD 702 664 461 n Southern Thailand Waste-to-Energy
n VI Fund III
n Cornerstone Investment in Leading IPP
REGIONAL 95 47 620 n High-Value Horticulture Development
n Bond Guarantee for RE and Energy Storage
n n n CreditAccess Asia
Agribusiness Private Equity
n n n OrbiMed III
Energy – Renewable Transport Viet Nam
n n n ASEAN Distributed Power Phase 1
Energy – Other Water n Municipal Waste to Energy Project
n n n ASEAN Distributed Power Phase 2
Financial Institutions Other n An Binh Commercial Joint Stock Bank
n n Agricultural Value Chain Development
Info, Com and Telecom
Portfolio as of 12/2017 (Outside Volume $MM, Inside Project Count)
Portfolio as of 12/2017 (Outside Volume $MM, Inside Project Count)
Products and Services
Instrument Typical Size Typical terms When is it relevant?

• 7 years (corporate) to 15+ years • Established company with large balance

(project) sheet, strong cash flow
Debt $20M - $500M • LIBOR / ADB cost of fund in local • Possibility to mobilize cofinancing under
currency + credit spread B-loan or risk participation
• Secured or unsecured

• 25% ownership maximum • Growing company in a pre-IPO or pre-

• Board seat trade sale situation
Equity $2M - $100M • Minority protection rights
• Put on the parent company

• Partial credit guarantees: market • Where other lenders are more efficient
based, fees based off lenders’ than ADB in mobilizing local currency, or
margin
Guarantees $20M - $500M reaching target customers (PCG)
• Political risk guarantees: market • In frontier markets (PRG)
based, fees based off reinsurance
market
• Long term loan at concessional • Whenever donor funds managed by ADB
interest rate to be “blended” are available
Donor
$5M - $10M with ADB financing • Applicable for climate mitigation and
Funding
• First loss cover adaptation projects or low-income
countries

• For project preparation TA, • For projects in need of additional,

reimbursable at closing concessional financial assistance
Technical
$0.5M - $1M • For capacity development TA,
Assistance
non-reimbursable grant
Working with PSOD
• Key difference between working with public and private
sector arms of ADB
▪ PSOD rarely participates at the design stage of projects
▪ Project sponsors have, in most cases, already selected
contractors and advisors

• When does PSOD make use of advisors?

▪ Complex financings which require lenders’ engineers, &
legal, financial and other advisors
▪ Implementation of technical assistance

• Strategic themes
▪ Early-stage project development
▪ Opportunities in all DMCs (knowledge of local markets)
▪ Climate change
▪ Technology
Contact person:
Kenji Yuhaku
Senior Advisor
kyuhaku@adb.org