Investor Presentaiton

Case Studies - Financial Sector IND: Expanding Credit Delivery for Micro-, Small-, and Medium-Sized Enterprises Project SRI: Improving Access to Finance for Micro, Small, and Medium-sized Enterprises RIKE Client: Cholamandalam Investment and Finance Company (Chola) ADB Commitment: $150m senior secured nonconvertible debentures in Indian rupees Key Features: • Based in Chennai, Chola is a pan-Indian nonbank financial company (NBFC) selected by ADB for its track record in providing finance to MSMEs in logistics and distribution services, which are critical for job creation and overall economic growth. Chola is an attractive partner for ADB, as 70% of its total portfolio is in states with a lower level of penetration by banks and formal financing institutions; in addition to its strong credit profile and good governance standards. ADB will provide longer-term financing to Chola, for on-lending to MSMEs, at least half of which will be from the lagging states. ADB's financing will meet Chola's requirements for scarce medium-term funds, which will help fund longer-tenor MSME loans and diversify Chola's funding mix. Given the slowdown in credit growth from banks in India, ADB's funding will also have a countercyclical benefit on MSME's access to finance, translating into balanced regional economic growth and employment. ADB's Value Addition: • Support growth and job creation in India's MSME segments, through improved access to finance, and in a period where commercial banks have slowed their pace of lending for this segment. Provide longer-tenor debt in local currency. Approval Date: 8 December 2017 Commitment Date: 7 August 2018 Client: DFCC Bank PLC ADB Commitment: $35m loan Key Features: . • DFCC is a universal bank with business lines including corporate banking; business banking targeting medium-sized firms; and branch banking, which serves micro and small enterprises and retail customers. ADB has a relationship with DFCC and its former subsidiary DFCC Vardhana Bank (DVB). DVB joined ADB's Trade Finance Program in 2004 and received a $15m loan for housing finance in 2012. DFCC is also a participant in ADB's SME Line of Credit Project. ADB's financing will support DFCC's funding requirements for medium-term funding, which is in short supply. This will enable the bank to provide longer- tenor micro, small, and medium-sized enterprises (MSMEs) loans and help the bank diversify its funding sources. ADB's Value Addition: • Provide access to longer-tenor debt in support of MSMEs, whose ability to access funds is constrained. Strengthen DFCC's outreach to women entrepreneurs and bolster internal policies on women. Approval Date: 16 May 2018 Commitment Date: 15 August 2018 7 October 2019 12 72 ADB

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