ADB to invest $40M in environment-friendly energy firms

The Asian Development Bank (ADB) will infuse $40 million in two “promising" companies that aim to invest in environment-friendly energy projects in the Philippines, India, and other Southeast Asian countries. In a statement, the Manila-based bank said its board of directors approved equity investments of $20 million each in Singapore-based Clean Resources Asia Growth Fund and UK-based Renewable Energy Asia Fund. Renewable Energy is investing in projects in the Philippines and India, while Clean Resources plans to put money in clean energy technology companies across Asia. “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 of ADB’s private sector operations department. Asia’s booming economies and surging demand for clean power make the region one of the most attractive investment destinations in the world, the bank said. Countries like China, India, and the Philippines have pledged to promote environment-friendly investments, the bank added. “[The] ADB’s participation in these funds will help them achieve their target fund size, and provide confidence to private investors to come on board," said Mu-Shin Kim, head of ADB’s private sector operation department-private equity. “It will also aid capital markets development by filling a financing gap, and encourage support for other private equity funds interested in the sector," Kim said. Sponsored by brokerage and investment firm CLSA Capital Partners, Clean Energy intends to make 12-14 energy-related investments, said ADB. Renewable Energy, managed by English fund manager Berkeley Energy, aims to take controlling stakes in projects and project developers with investments ranging from €5 million to €25 million. — JE/VS, GMANews.TV