ADM Capital Closes Secured Lending Vehicle
Private markets investor ADM Capital has held the final close for its Asia Secured Lending Facility II at USD$178m. ASLF II received USD50m and USD10m in commitments, respectively, from the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, and Calvert Impact Capital.
IFC, a member of the World Bank Group, alongside another investor, provided initial seed capital in 2016 and the Facility—also known as the Somei Lending Platform—has already made seven investments since its first close in September 2017.
“We are delighted to partner with two additional leading development finance institutions that share our commitment to sustainably advancing Asian emerging economies,” said Christopher Botsford, co-founding Partner at ADM Capital. “Our long-term capital supports growth and allows borrowers to operate through periodic business fluctuations, while providing attractive risk-adjusted returns to investors.”
“At IFC, one of our key areas of focus is SMEs,” said Vivek Pathak, IFC Director for East Asia & the Pacific. “We reiterate our support for this Facility—which succeeds Asia Secured Lending Facility I—to support small businesses, which drive economic growth and create between 70 and 95 percent of new employment opportunities in the emerging economies across the region.” He added: “While access to capital continues to be one of the toughest challenges, we hope to reach out to the sector more effectively and efficiently through our continued partnership with ADM Capital.”
Investor participation in the ASLFII is structured in the form of a syndicated loan platform with a revolving senior tranche plus a junior tranche, allowing capital to be recycled throughout a six-year availability period.