ADB, 2 private-sector firms start US$400m climate-linked investment fund

PUBLISHED : Tuesday, 05 August, 2014, 10:15am
UPDATED : Wednesday, 06 August, 2014, 5:01am

The Asian Development Bank has entered into a Hong Kong-based joint venture with two private-sector firms to make private equity investments in environmentally supportive, low-carbon deals throughout Asia.

The ADB, Orix Corp and Robeco Institutional Asset Management announced on Monday the formation of Asia Climate Partners (ACP), which they will fund initially with US$400 million.

Orix is a Japanese financial services firm listed in Tokyo and New York. It is also the majority shareholder of Robeco, a Dutch company with more than US$290 billion in assets under management.

The joint venture would be dedicated to investing in renewable energy, clean technology, natural resource efficiency, water, agriculture, forestry and other climate-friendly firms and transactions designed to generate market-driven, risk-adjusted returns and have a positive environmental and social impact, the firms said.

"We believe that ACP provides an innovative platform to deploy capital into climate-related transactions across Asia that are designed to generate attractive returns," said Todd Freeland, the director general of ADB's private sector operations department.

"ACP will benefit from the combined strengths of Robeco as a global asset manager and Orix and ADB, which are two of the most active and successful investors in the low-carbon sector in Asia. The substantial resources that the founding partners are committing to ACP will help position it as the pre-eminent investor in this asset class in Asia."

Yuichi Nishigori, a corporate senior vice-president at Orix, said: "Orix has established an extensive network through more than 40 years as an active investor, owner and operator of businesses throughout Asia. The energy and environmental sectors are core components of our business strategy."

Between 2011 and last year, the Manila-based ADB, the mission of which is to reduce poverty in Asia and the Pacific, mobilised nearly US$10 billion in climate-related financing.