The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a commitment of USD100 million to the Keppel Asia Infrastructure Fund (the Fund) and a co-investment sleeve of up to USD50 million. The Bank’s investment aims to crowd in private capital for infrastructure in AIIB’s members via the Fund, which invests in a broad range of infrastructure sectors with a focus on emerging markets in Asia.
The Keppel Asia Infrastructure Fund is a closed-end private equity fund with a target size of USD1 billion. The Fund Manager’s parent company, Singapore-based Keppel Corporation, has established and diversified infrastructure businesses in the region. Leveraging the Keppel Group’s regional network and project capabilities, the Fund will invest growth and expansion capital into diversified infrastructure projects in the Asia-Pacific region, covering power, renewable energy and energy efficiency, telecommunications, transportation and logistics, as well as social infrastructure.
“With this investment, AIIB will be able to diversify the geographical and sectoral coverage of its equity portfolio across AIIB members while influencing positively the investment policies and environmental and social management system of the Fund Manager,” said AIIB Vice President, Investment Operations D.J. Pandian.
“By catalyzing other institutional investors’ involvement into the Fund and generating debt financing opportunities for infrastructure investors through the Fund’s equity investments, AIIB will help mobilize private capital for infrastructure,” said Pandian.
AIIB is the first multilateral investor to partner with Keppel to invest in the Fund, which pitches to other international institutional investors focused on Asian investments.
