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Asian Development Bank (ADB) to invest $20 million each in Clean Resources Asia Growth Fund & Renewable Energy Asia Fund

Just a couple of days back Asian Development Bank (ADB) was in the news for the signing of  a joint venture agreement with India’s NTPC Ltd. and Kyushu Electric Power Company of Japan to develop and operate 500 megawatts of renewable energy projects in India in the next three years.

According to this report today, The Asian Development Bank (ADB) will infuse $40 million in two “promising” companies that aim to invest in environment-friendly energy projects in the Philippines, India, and other Southeast Asian countries.

In a statement, the Manila-based bank said its board of directors approved equity investments of $20 million each in Singapore-based Clean Resources Asia Growth Fund and UK-based Renewable Energy Asia Fund.

Renewable Energy is investing in projects in the Philippines and India, while Clean Resources plans to put money in clean energy technology companies across Asia.

ADB to invest $40M in environment-friendly energy firms

…….“The ultimate impact of these funds will be increased contributions from investee companies to sustainable economic growth and greenhouse gas emission reductions in ADB’s developing member countries,” said Robert van Zwieten, director of ADB’s private sector operations department.

Asia’s booming economies and surging demand for clean power make the region one of the most attractive investment destinations in the world, the bank said.

…….“[The] ADB’s participation in these funds will help them achieve their target fund size, and provide confidence to private investors to come on board,” said Mu-Shin Kim, head of ADB’s private sector operation department-private equity.
“It will also aid capital markets development by filling a financing gap, and encourage support for other private equity funds interested in the sector,” Kim said.

Sponsored by brokerage and investment firm CLSA Capital Partners, Clean Energy intends to make 12-14 energy-related investments, said ADB.

Renewable Energy, managed by English fund manager Berkeley Energy, aims to take controlling stakes in projects and project developers with investments ranging from €5 million to €25 million.

According to Panchabuta’s understanding Clean Resources Asia Growth Fund (CRAGF), is a $200 million clean technology fund. The Fund will invest in a diversified portfolio in the Asia-Pacific region.

The Fund is expected to consist of a portfolio of ten to twelve companies according to data available with Panchabuta with investments generally ranging from $10 million to $30 million. The Fund will target opportunities across the value chain, within the clean technology sector, including several areas that are currently underserved by capital sources – (i) pollution and waste management technologies, (ii) water and waste water solutions, (iii) sustainable agriculture technologies, (iv) energy efficiency technologies and (v) supply chain investments for alternative energy.

The Renewable Energy Asia Fund is managed by English fund manager Berkeley Energy which was founded in 2007 by principals TC Kundi, Robert Renfrew, Jeremy Smith and Alastair Vere Nicoll. Berkeley Energy seeks to make equity investments into development stage renewable energy projects and project developers, mature and consolidate these investments into operating portfolios and generate superior returns through successful exits.

According to Berkeley Energy, the Renewable Energy Asia Fund (‘REAF’) invests into post-permitted projects and project developers with a technology focus is wind, small hydro, biomass, solar, geothermal and landfill gas and a primary geography focus of India and additional target markets including Philippines, Sri Lanka, Thailand and Vietnam.

It seems like India is entering into a very exciting phase with announcements of new funds, funding commitments from major banks, countries announcing India focused funds/funding opportunities, Exim Bank funding avenues etc. almost on a daily basis. Panchabuta will aim to cover all the happenings in this space with accurate information and insights to all its readers and track the actual progress.

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