The Asia Infrastructure Investment Bank (AIIB) is investing $100 million in a renewable energy fund run by ADM Capital.
The investment is for ADM Capital's Elkhorn emerging Asia renewable energy fund, which is a closed end debt fund that focused on small and medium sized firms engaged in renewable energy and energy efficiency projects in Asia. The fund hopes to raise $500m and will close in 2021.
The fund is expected to help with electricity access improvement, energy efficiency acceleration and carbon intensity reduction of electricity supply of AIIB’s regional members, according to an AIIB statement. This is the first time AIIB has contributed to a private debt fund.
The fund will be ADM Capital’s tenth direct lending private credit fund, aiming to address unsatisfied funding needs in renewable energy sector in Asia by providing medium term, senior and subordinated debt financing solutions to renewable energy projects and developers.
According to the South China Morning Post, the fund will have a fixed life of about 10 years and will lend debt financing to entrepreneurs that operate solar, wind, hydro and biomass energy projects in Vietnam, India, Indonesia, Philippines and Thailand.
ADM Capital is based in Hong Kong and was established in 1998. It initially focused on distressed debt opportunities across the region.
