PROPARCO in THE MEKOnG REGiOn

PROPARCO
in the Mekong region
Investing in a sustainable future
© Christian Berger
CAMBODIA
LAOS
VIETNAM
SUPPORTING A DYNAMIC PRIVATE SECTOR
IN THE MEKONG REGION
PROPARCO covers the Mekong region from its regional
office based in Bangkok, Thailand. This office also covers
China, Indonesia, Mongolia, the Philippines and Thailand.
Since active in the area, PROPARCO has committed a total
of US$ 550m.
Hanoi
The Mekong region has experienced rapid economic
development and sustained growth over the past two
decades. This evolution means extraordinary opportunities
for the countries in the region, but also unprecedented
economic, social and environmental challenges. Whether
improving access to basic goods and services, distributing
the dividends of growth or protecting the environment
and mitigating climate change, the countries of the Mekong
basin must incorporate local and global issues into their
growth strategies.
Our approach
PROPARCO is a development finance institution
and acts as a catalyst for private investment. Its activities
in the Mekong region are built on three main pillars :
› Encouraging strong growth for sustainable jobs,
› Promoting innovative and responsible
business models,
› Supporting the development and sophistication
of financial markets.
Vientiane
Bangkok
Phnom Penh
Key figures for the Mekong region
US$ 350 m
US$ 280 m
committed
since 2002
in portfolio
on 30/06/11
18 projects
in portfolio
on 30/06/11
Portfolio per sector in the Mekong region
(as a % of total portfolio) on 30/06/11
5% 11%
36%
Corporate
Investment funds
48%
Financial sector
Infrastructure
PROMOTING SUSTAINABLE GROWTH …
In the Mekong basin, PROPARCO focuses its efforts on the main drivers of sustainable and shared growth.
SUSTAINABLE
INFRASTRUCTURES
Laos
Developing
hydroelectric power
PROPARCO co-financed the
capacity increase of the Theun
Hinboun hydroelectric power
plant through a US$ 40 m loan.
This financing helped boost
regional energy supply against
a backdrop of rising demand.
CambodIA
Reinforcing airport
infrastructures
PROPARCO helped finance
the upgrading of three
international airports at
Phnom Penh, Siem Reap
and Sihanoukville, amounting
to a total of US$ 17 m.
This project opens up
new prospects for tourism
and regional integration.
financing the infrastructures
essential for growth
helping businesses
development
PROPARCO participates in the financing
of major industrial and infrastructure
projects in order to meet challenges posed
by economic growth. Its investments in
the transport, energy production and
telecommunication sectors are opening
up new growth prospects for the local
economic fabric. PROPARCO works
with local or international private groups
through a variety of legal frameworks and
financial structuring.
PROPARCO supports the growth of local,
regional and international companies
whose impact on development is
significant and sustainable. It is involved
in a broad range of industries, from
agriculture to manufacturing and services.
This long-term support contributes to
strengthening the local economic fabric
and helps create jobs while improving the
competitiveness of companies.
… AND DEVELOPMENT
Promoting access to the
banking and financial sectors
supporting
investment funds
To help them meet the long-term
financing needs of companies and small
and medium enterprises, PROPARCO
is supporting major banks and their
subsidiaries as well as microfinance
institutions. It offers a wide range
of financial tools and supports the
dissemination of best international
standards with respect to environmental,
social and governance issues.
PROPARCO invests in generalist or
industry specific investment funds.
Companies can thus access capital vital
for their growth and support in terms of
defining strategy, improving governance
and accessing international professional
networks. This type of intervention
enables PROPARCO to leverage the
impact of its investments.
BANKS AND
FINANCIAL MARKETS
CAMBODIA
Developing microfinance
PROPARCO financed three key
microfinance players
in Cambodia : AMRET with
a € 1.6 m equity investment
and a US$ 4 m loan, ACLEDA
with a US$ 10 m loan and
Hattha Kaksekar Limited (HKL)
with a US$ 5 m loan. This
support for the microfinance
sector helps strengthen
the local economic fabric.
Vietnam
© Christian Berger
Financing the growth
of the banking sector
PROPARCO senior and
subordinated loans to private
banks such as Sacombank
(US$ 50 m) help strengthen the
Vietnamese banking system.
OFFERING LONG-TERM FINANCING SOLUTIONS
Complementary to the bank commercial offer, PROPARCO proposes a range of long-term financial
instruments in accordance with the principle of subsidiarity. It offers its clients long-term support tailored
to their specific needs.
Medium and long-term loans
Equity investments
Guarantees
PROPARCO offers a diversified range
of loans : senior, junior, mezzanine and
subordinated. These loans, in foreign
or local currency, range from € 5m to
100m with maturities of 5 to 20 years.
PROPARCO proposes direct loans in
local currency to reduce the foreign
exchange risk exposure of its clients.
PROPARCO can invest in funds or
directly enter the capital of companies. It
is systematically a minority shareholder
and tends to exit such investments
within 5 to 8 years, once the companies
have gained access to the financial
markets.
PROPARCO’s signature provides its
clients with a guarantee of solvency
that can take several forms:
› guarantees for bond issues,
› guarantees for inter-bank loans,
› guarantees for local currency loans.
“ Since our creation, we have been driven by the conviction that it is possible
to reconcile economic growth, environmental balance and social progress.
This is why we strive to promote the principles of responsible
financing in all of our actions.”
Étienne Viard,
© Haikeu
CEO of PROPARCO
Key figures
As at 31/12/2010
11 regional
300
70
¤ 950 m
¤ 2.1 bn
offices
clients
projects
committed in 2010
in portfolio
PROPARCO
is a development finance institution whose role is to promote private investment
in emerging and developing countries.
PROPARCO, development finance institution, was incorporated in 1977 with the
idea of leveraging private sector role in development. The mission of PROPARCO,
subsidiary of the Agence Française de Développement (AFD) dedicated to the
private sector, is to encourage investment in the emerging or developing countries
in favor of growth, sustainable development and the achievement of the Millennium
Development Goals. Through the principle of subsidiarity, it invests in regions, sectors
or entrepreneurial projects that are felt to be too risky by the commercial banks.
PROPARCO is present on four continents, from major emerging countries to leastdeveloped countries. It provides sustained support for its clients, proposing a full range
of long-term financial instruments tailored to the specific needs of the private sector in
these regions. It applies high level requirements in terms of environmental and social
responsibility, and encourages the development of sustainable businesses, banks and
infrastructures as well as mitigation of global warming.
Bangkok Office
Exchange Tower
35th floor, Unit 3501-02
388 Sukhumvit Road, Klongtoey
Bangkok 10 110, Thailand
Tel. : + 66 (0)2 663 60 90
Fax : + 66 (0)2 663 60 77
http://asia.proparco.fr
Head office
151 rue Saint-Honoré
75001 Paris
France
Tel. : + 33 (0)1 53 44 31 08
Fax : + 33 (0)1 53 44 38 38
© Vyacheslav Argenberg
http://www.proparco.fr
Printed on recycled paper.