ADB injects 40 million in clean energy

ADB will inject up to $40 million in two new private equity funds that supports clean energy development.

ADB's Board of Directors approved equity investments of up to $20 million each in the Clean Resources Asia Growth Fund and the Renewable Energy Asia Fund that will target investments in promising green companies and projects across the region.

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.

ADB, which is committed to low carbon growth and renewable energy development in member countries, has been an active participant in clean energy funds since the early 2000s, helping to position them as a new asset class in Asia. The latest equity investments follow the screening of over a dozen clean energy sector focused funds that approached ADB in the past two years.

"ADB's participation in these funds will help them achieve their target fund size, and provide confidence to private investors to come on board. It will also aid capital markets development by filling a financing gap, and encourage support for other private equity funds interested in the sector," said Mr. M. Shin Kim, Head of Private Equity in PSOD.