CDC posts $345m return for 2012

CDC said in its annual report that performance was driven in part by the rise in global markets. The group's shareholder, the UK Department for International Development, has received a return on capital of 6% over three years.

In 2012, CDC invested GBP397 million in businesses in the developing countries of South Asia and sub-Saharan Africa, an increase of GBP33 million over 2011. Of total investments by value, 43% - or GBP171 million - went to Africa.

The group's South Asia activity included a $20 million commitment to Au Financiers (AUF) a non-banking finance company (NBFC) in India that provides collateralised loans for commercial vehicles to clients who are typically first-time entrepreneurs located in under-banked rural and semi-urban areas.

CDC plans to commit $1 billion to India over the next 4-5 years, with nearly half of it coming through direct investment.

The projection is in line with a wider adjustment in CDC's mandate that will see it focus exclusively on South Asia and Africa. As well as acting as a fund-of-funds investor, CDC will now also provide debt and direct investment to businesses in these regions.

The group said that direct and debt investments would each account for 20% of its global portfolio by 2015, initially through co-investment and co-lending.

 

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• Topics
• South Asia
• Europe
• LPs
• India
• CDC Group
• Direct investment
• LPs