Singapore-based Keppel Ltd., through its fund management and investment platforms, has signed a strategic partnership agreement with the Asian Infrastructure Investment Bank (AIIB) to facilitate and mobilize up to $1.5 billion worth of sustainable infrastructure investments and financing opportunities in the Asia Pacific (APAC) region.
Keppel said in a statement on Wednesday that this strategic partnership will focus on funding infrastructure projects developed by Keppel and invested by its private funds which advance green infrastructure, connectivity and technology-enabled infrastructure.
According to the statement, Keppel and AIIB’s partnership will explore such projects in sectors including power transmission and distribution, renewable energy, digital infrastructure, transportation and urban services.
This collaboration will leverage Keppel’s deep expertise in innovative solutions for large-scale sustainable infrastructure and AIIB’s capacity to provide long-term capital through both debt and equity financing instruments.
The partnership is expected to cover projects across developing economies in the APAC region, with an initial period of five years ending in December 2030, in line with AIIB’s Corporate Strategy for 2021-2030.
It will also serve as a strategic platform for fostering knowledge exchange and best practice sharing, as well as deepening the existing partnership and communication channels between the two organizations.
“Despite increasing investments in green infrastructure and connectivity, a significant infrastructure gap persists across APAC, driven by the urgent demands of a growing and rapidly urbanizing population,
“We are pleased to build on our longstanding relationship with AIIB, a valued partner who has invested with Keppel across multiple fund strategies and asset classes, to address the burgeoning needs,” said Christina Tan, Chief Executive Officer, Fund Management, and Chief Investment Officer, Keppel.
According to her, by combining AIIB’s financial strength with Keppel’s proven track record of developing, operating and managing large-scale infrastructure, this strategic partnership positions the firm to accelerate Asia Pacific’s transition towards a more sustainable future.
Meanwhile, Rajat Misra, Acting Chief Investment Officer (Region 1) and Financial Institutions and Funds (Global) Clients, AIIB, said Keppel is a valued partner with a strong track record in infrastructure.
“This agreement reflects AIIB’s continued commitment to partnering with leading institutions to finance infrastructure that is green, technology-enabled and regionally connected,
“We look forward to expanding our collaboration to support resilient and forward-looking infrastructure across Asia-Pacific,” he added.
According to the statement, the aforementioned strategic partnership agreement is not expected to have any material impact on Keppel’s earnings per share or net tangible assets per share for the current financial year.
Keppel is a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.
Headquartered in Singapore, the firm operates in more than 20 countries worldwide, providing critical infrastructure and services for renewables, clean energy, decarbonization, sustainable urban renewal and digital connectivity.
Keppel creates value for investors and stakeholders through its investment platforms and diverse asset portfolios, including private funds and listed real estate and business trusts.
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