The Asian Infrastructure Investment Bank (AIIB) has given the green light for two private equity funds totalling US$125 million.
“As anchor investor in the funds, AIIB will catalyse private capital for infrastructure investments in dedicated sectors and geographical regions via the funds,” the AIIB said in a statement.
The investment includes a $75 million commitment to the CITIC Capital Pan Eurasia Fund targeting infrastructure and other productive sectors, giving institutional investors access to Eurasian countries.
The commitment is the AIIB’s first private equity fund commitment dedicated to Eurasian countries, the development bank said in a statement.
“Central Asia faces an infrastructure investment need of $565 billion, according to projections from the Asian Development Bank,” the AIIB statement said.
“Increasing urbanisation, population growth and rising energy demand in the region is fueling demand for infrastructure investments. The project addresses these needs with its diversified sector composition, including resource efficiency, renewables, food and water safety, logistics, transportation and technology. The fund has a target size of $500 million.”
Separately, another investment of up to $50 million has also been given the go-ahead for the SUSI Asia Energy Transition Fund. It focuses on the energy sector by targeting renewable energy, energy efficiency, energy storage and microgrid projects predominantly in the Asean region. The fund’s target size is $250 million.
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