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Asian Development Bank boosts support for clean energy development

  • 13 years ago (2010-12-01)
  • Junior Isles
Asia 864 Europe 1072

The Asian Development Bank (ADB) has said it will infuse 40 million dollars into two private equity funds that target promising green companies and projects in the region.

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The Manila-based bank said its Board of Directors approved equity investments of 20 million dollars each in the Clean Resources Asia Growth Fund and the Renewable Energy Asia Fund.

The Clean Resources Asia Growth Fund, sponsored by Asian brokerage firm CLSA Capital Partners, aims to invest in companies engaged in clean energy-related operations.

The target fund size is 200 million dollars, mainly focused on China and India, the bank said.

The Renewable Energy Asia Fund, managed by Britain's Berkeley Energy, seeks out renewable energy projects in India, the Philippines and other South-East Asian countries.

The fund, which expects to make investments ranging from 5 million euros (6.6 million dollars) to 25 million euros, has a target size of 150 million euros, the bank said.

"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 M Shin Kim, head of private equity in the bank's Private Sector Operations Department.

"It will also aid capital markets development by filling a financing gap and encourage support for other private equity funds interested in the sector," he added.

The bank noted that Asia's booming economies and surging demand for clean energy were making the region one of the most attractive destinations in the world for environmentally friendly investments.

It cited China, India and the Philippines as among the most promising economies.