A development organisation and an investment house focused on Asia and Europe have launched a lending platform for unloved, but financially sound, businesses.

IFC, a member of the World Bank Group, and ADM Capital, an investor in stressed companies in Asia and Europe, have launched a lending platform to support what they see as sound but financially stressed companies in Asia. 

Known as the ADM Capital Somei Lending Platform, it seeks to fill a “credit vacuum” in Asia whereby stressed, small and middle market firms that operate in dysfunctional markets or in special situations gain access to medium-term debt financing that cannot be obtained through traditional sources, a press release from the organisations said yesterday.

“Banking systems are at capacity, and constrained by regulation in an environment that is witnessing an ongoing need for cross-border and specialist financing, resulting in a collapse of funding options for small and mid-sized companies,” said Christopher Botsford, joint chief investment officer of ADM Capital. 

IFC and another, unnamed financial institution have each committed seed capital of $50 million to the platform, the statement said.

The platform follows the work of the existing ADM Asia Secured Lending Facility, which is nearing maturity and full capacity use.

Countries covered by the platform include Cambodia, China, Indonesia, Mongolia, Myanmar, the Philippines, Thailand and Vietnam. Individual loans are expected to range from $10 million to $15 million with maturities of up to three-to-five years.

ADM Capital has been investing globally since 1998 with approximately $1.2 billion assets under management in over 15 countries. The firm’s investments focus on private transactions sourced through ADM Capital's proprietary network; there are some investments in public capital markets.