The Asia Development Bank (ADB) has approved a US$15m equity participation in a new private equity fund that provides capital for small- and medium-size enterprises (SMEs) in the member countries of the Association of Southeast Asian Nations (ASEAN), and the People's Republic of China (PRC).
This is the first ADB-assisted investment fund. Besides ADB, the fund's initial core limited partners include the State Secretariat of Economic Affairs of Switzerland, which will also invest up to US$15m, and the United Overseas Bank Group of Singapore, which will invest up to US$10m.
The ASEAN China Investment Fund seeks to capitalise on investment opportunities in privately-held SMEs, particularly those that can benefit from expanding regional trade and investment linkages, and global integration, the Manila-based ADB said in a statement.
