ADB to in­crease sup­port for clean-en­ergy devel­op­ment

The Pak Banker - - Front Page -

LONDON: The Asian Devel­op­ment Bank (ADB) will in­crease its sup­port for clean-en­ergy devel­op­ment by in­ject­ing up to $40 mil­lion into two new pri­vate-eq­uity funds in­vest­ing in promis­ing re­gional green com­pa­nies and projects.

Its board of di­rec­tors has ap­proved eq­uity in­vest­ment of up to $20 mil­lion each in the Singapore-based Clean Re­sources Asia Growth Fund and the UK-based Re­new­able En­ergy Asia Fund. The for­mer in­vests in Asian clean-en­ergy technology com­pa­nies fo­cused, while the lat­ter in­vests pri­mar­ily in re­new­able en­ergy projects in In­dia and the Philip­pines.

"The im­pact of these funds will be in­creased con­tri­bu­tions from in­vestee com­pa­nies for sus­tain­able eco­nomic growth and green­house gas emis­sion re­duc­tions in the ADB's de­vel­op­ing mem­ber coun­tries," said Robert van Zwi­eten, di­rec­tor of the ADB's Pri­vate Sec­tor Op­er­a­tions Depart­ment (PSOD).

Asia's boom­ing economies and surg­ing de­mand for clean power to strengthen en­ergy se­cu­rity and re­duce pol­lu­tion as well as on­go­ing sec­tor re­forms in many coun­tries are mak­ing the con­ti­nent one of the most at­trac­tive desti­na­tions for en­vi­ron­men­tally friendly in­vest­ments. China, In­dia and the Philip­pines show the most prom­ise.

The ADB has been an ac­tive par­tic­i­pant in clean-en­ergy funds for sev­eral years, help­ing to po­si­tion the funds as a new as­set class in Asia. These lat­est eq­uity in­vest­ments fol­low the screen­ing of more than a dozen funds in the sec­tor that have ap­proached ADB over the past two years. The Clean Re­sources Asia Growth Fund - spon­sored by CLSA Cap­i­tal Part­ners, a bro­ker­age and in­vest­ment group ac­tive in Asia since 1986 - will tar­get busi­nesses en­gaged in cleanen­ergy op­er­a­tions in Asia, with the main fo­cus in China and In­dia. -PB News

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