ADB's Board of Directors approved equity investments of up to $20M each in the Clean Resources Asia Growth Fund and the Renewable Energy Asia Fund. The former will target private equity investments in clean energy technology companies focused on Asia, while the latter will invest primarily in renewable energy projects in India and the Philippines.
"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 in ADB's Private Sector Operations Department (PSOD).
Asia's booming economies and surging demand for clean power to strengthen energy security and reduce pollution, as well as ongoing sector reforms in many countries, are making the region one of the most attractive destinations in the world for environmentally-friendly investments. The People's Republic of China (PRC), India and the Philippines, are among the economies that have the most promise.
The Clean Resources Asia Growth Fund - sponsored by CLSA Capital Partners, a brokerage and investment group active in Asia since 1986 - will target businesses engaged in clean energy-related operations in Asia, with the main focus in the PRC and India. It will make about 12 to 14 investments, taking significant minority positions in investee companies. The target fund size is $200M.
The Renewable Energy Asia Fund - to be managed by UK fund manager Berkeley Energy - will seek out renewable energy projects, with a focus on India, the Philippines and other Southeast Asian countries. It will aim to take controlling stakes in projects and project developers with investments ranging from EUR 5M to EUR 25M. The target fund size is EUR 150M.
