The Asian Development Bank (ADB) has approved $95 million in investment to be made in Singapore-based global sustainable infrastructure fund Clifford Capital Holdings (CCH).
The transaction comprises a $50 million investment from ADB and a $45 million investment from the Leading Asia’s Private Sector Infrastructure Fund.
The transaction is ADB’s first investment in a Singapore entity since the opening of its Singapore Office in March 2020.
ADB will have a shareholding interest of 6.3% in CCH immediately post-closing and a pro forma shareholding of 10.8% once all equity capital committed has been fully deployed.
CCH will use the investment to fund its future growth plans, including in sustainable infrastructure financing in developing Asia.
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CCH has been established to address the substantial infrastructure financing gap in Asia, while closely aligning with Singapore’s economic growth initiatives in the infrastructure, maritime and other real assets sectors.
Most infrastructure investment in Asia is financed by the public sector, but those resources are not enough to meet the region’s infrastructure financing needs. Greater public funding for COVID-19 responses is expected to spur a greater reliance on private sector funding to close the gap.
Director general of ADB’s private sector operations department, Mike Barrow, said: “Developing Asia and the Pacific needs $1.7 trillion annually in infrastructure financing through 2030 to maintain growth, tackle poverty and address climate change.
“CCH is uniquely placed to attract long-term institutional capital to this underserved market. As a major multilateral investor, we are pleased to support CCH and its subsidiaries through their next stage of growth.”