[SINGAPORE] Asset manager Keppel has partnered Asian Infrastructure Investment Bank (AIIB) to facilitate up to US$1.5 billion worth of sustainable infrastructure investments and financing opportunities in the Asia-Pacific.
The tie-up will last for an initial five-year period up to December 2030, and focus on funding infrastructure projects developed by Keppel and invested by its private funds, the company announced on Wednesday (Jun 25).
The projects will advance green infrastructure, connectivity and technology-enabled infrastructure. Areas of interest include power transmission and distribution, renewable energy, transportation and urban services.
The Asia-Pacific faces a “significant infrastructure gap” due to the demands of a rapidly urbanising population, said Christina Tan, Keppel’s chief executive for fund management.
She believes that the partnership will combine AIIB’s financial strength with Keppel’s track record in large-scale infrastructure projects, highlighting that both have a “longstanding relationship”.
She also referred to AIIB as “a valued partner who has invested with Keppel across multiple fund strategies and asset classes, to address burgeoning needs”.
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Headquartered in Beijing, AIIB is a multilateral development bank focused on developing Asia, that has been described by some as “China’s answer to the World Bank”. It provides long-term capital through both debt and equity financing.
Rajat Misra, a senior executive at AIIB, said that the partnership reflects its “continued commitment to partnering with leading institutions to finance infrastructure that is green, technology-enabled and regionally connected”.
He noted: “We look forward to expanding our collaboration to support resilient and forward-looking infrastructure across the Asia-Pacific.”
In Keppel’s latest annual report, chief executive Loh Chin Hua noted that infrastructure “remains a highly attractive asset class, providing stability and resilience to investors”.
He added: “The infrastructure market is poised for significant growth, driven by rapid digitalisation and the energy transition. As a global asset manager with deep operating capabilities in sustainability and connectivity solutions, Keppel is strategically positioned to capitalise on these transformative opportunities, to create value for our limited partners and shareholders.”
As at end-2024, Keppel’s infrastructure funds under management stood at S$19 billion. Its portfolio includes energy and environmental assets, as well as digital infrastructure such as the Bifrost Cable System, the world’s first subsea cable system directly connecting Singapore to the west coast of North America.
The partnership with AIIB is not expected to have any material impact on Keppel’s earnings per share for the current financial year.
Keppel shares ended Wednesday flat at S$7.40.
