AfDB invests in a fund managed by Creator

The Asian Development Bank (AfDB) invested $ 60 million in a private equity firm to provide capital to companies based in South and Southeast Asia.

AfDB’s investment in Creador V LP (Creador V) aims to create investments in businesses in the two regions with the hope of generating new jobs, increasing tax revenues and improving access to services. health and financial.

Creador V will provide growth capital primarily to middle market companies operating in business services, consumer goods and services, healthcare, pharmaceuticals, financial services and manufacturing in India, Indonesia, Malaysia , the Philippines and Viet Nam. Creator may also selectively consider investments to support businesses in Bangladesh, Singapore, Sri Lanka, and Thailand.

“Creador has emerged as one of the leading institutional private equity platforms in Southeast Asia,” said Janette Hall, director of the AfDB’s Private Sector Investment Funds and Special Initiatives Division. “The AfDB is proud to continue its partnership with Creador, as they remain focused on the markets and sectors where the AfDB seeks to develop its equity portfolio.

This is the AfDB’s third investment in a fund managed by Creador after investments in Creador III, LP in 2016 and Creador IV, LP in 2018. As part of the AfDB investment, Creador will adopt initiatives in issues to promote greater financial inclusion of women through investments.

Creador was established in 2011 and has since successfully launched five private equity funds, totaling approximately $ 2 billion in committed capital as of December 2021. It employs 50 professionals in five offices in developing Asia.

Dollar bonds

The AfDB has raised $ 3.5 billion through the issuance of a 5-year global benchmark bond in the US dollar bond market to increase its ordinary capital resources (OCR).

The AfDB plans to raise up to $ 36 billion in capital markets in 2022.

“We are delighted with the support of our investors in all regions for our first global benchmark of the year,” said AfDB Treasurer Pierre Van Peteghem. “With an order book of over $ 5 billion, we are able to raise $ 3.5 billion in additional resources as we help our developing member countries overcome the health, social and economic impact of the disease. pandemic.”

The 5-year bond, with a coupon rate of 1.5% per annum payable semi-annually and a maturity date of January 20, 2027, was listed at 99.431% for a yield of 8.73 basis points over 1.25% US Treasury bills due December 2026.

The transaction was led by BofA Securities, Citi, Deutsche Bank and JP Morgan. A syndicate group was also formed, consisting of CIBC Capital Markets, DBS, ING and Scotiabank.

The issue was widely distributed on the primary market, with 22% of bonds placed in Asia; 48% in Europe, the Middle East and Africa; and 30 percent in the Americas. By type of investor, 44% of bonds went to central banks and official institutions, 41% to banks and 15% to fund managers and other types of investors.

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