AIIB invests $100m in SME renewable energy fund
In a first-of-its-kind private credit fund financing, the Asian Infrastructure Investment Bank has approved a $100 million investment into the ADM Capital Elkhorn Emerging Asia Renewable Energy Fund.
The fund targets small and medium-sized enterprises and projects operating in the renewable energy and energy efficiency sectors across emerging economies in Asia.
It opens the door to renewable energy and energy efficiency projects in emerging Asia to make it easier for them to secure financing to help get their projects off the ground. Smaller companies and projects in this industry face a financing gap because larger banks and financial institutions do not traditionally provide them loans due to their size, complex risk profile and their need for a structured financing solution.
The fund, which has a target size of $500 million, is expected to improve electricity access and security, promote energy efficiency and help reduce the carbon intensity of electricity supply of AIIB’s regional members.
