Portfolio Partner Profile
ADM Asia Secured Lending Facility II
ADM Capital, through its Asia Secured Lending Facility II (ASLF II), provides secured financing to mid-sized companies in a variety of sectors across Asia. Currently, the ASLF II portfolio is well diversified across emerging Asia, with current borrowers ranging healthcare, real estate, technology and media companies, among others. ASLF II focuses on borrowers that fall into the definition of the “missing middle”, companies that are too large for microfinance and too small for traditional banks. Loans that are extended by the facility are managed and measured along defined ESG parameters in line with IFC policy. ASLF II is managed by ADM Capital (ADM), an asset manager headquartered in Hong Kong with more than 20 years of emerging market investment experience. In 2006, the Partners of ADM Capital established the ADM Capital Foundation, an impact driven foundation focused on making change in Asia. With an increasing focus on the development impact of their investments, ADM Capital is effectively able to mitigate ESG risk and deliver value, without comprising returns. ASLF II is a follow-on to ASLF I, which launched in 2012 in partnership with the IFC and also focused on unlocking growth and creating jobs at financially stressed Asian midsize companies. Examples of the uses of funds from loans made by ASLF II include the development of low-cost residential housing, the expansion of an equipment leasing business, and the growth of a restaurant chain targeting low-mid income consumers.
In 2015, through its Asia Secured Lending Facility I, ADM Capital provided financing to greenfield leasing company Rent2Own (R2O), in Myanmar. In the three years since receiving ADM Capital’s investment, Rent2Own has grown remarkably; financing over 50,000 motorcycles, servicing over 300 motorcycle dealers whilst establishing 34 branches with approximately 400 employees. Currently, Rent2Own has 50% market share of the motorcycle leasing space and is attributed to 20% of all bikes sold across the country. Rent2Own’s customers predominantly use motorcycles to generate income, with surveys suggesting “taking children to school” is the second usage priority. The company demonstrated its own commitment to environmental sustainability by creating ride-sharing initiatives for internal staff commutes, limiting paper waste via systematic digitisation and in counteracting potential harmful motorcycle CO2 emissions, planning for the plantation of around 360 acres of tropical hardwood forestry to offset the portfolio of motorcycles financed during its first year of operation. The ADM Capital loan facility to Rent2Own was refinanced in December 2018 after the company obtained investment from leading development finance institutions.