1.2 billion for asian clean energy investments

http://www.environmental-finance.com/onlinews/0417adb.html

ADB to seed up to $1.2 billion of clean energy funds
London, 17 April: The Asian Development Bank (ADB) has named five clean energy private equity funds to which it is providing up to $100 million in seed financing. Between them, the funds hope to raise a total of $1.2 billion to invest in clean energy projects in Asia.

“ADB believes the success of these funds will help demonstrate the credibility of private equity in the emerging clean energy sector in developing Asia and mobilise capital to support other private equity funds,” said Mu-Shin Kim, investment specialist in ADB’s private sector operations department.

The funds – MAP Clean Energy Fund, China Environment Fund III (CEF III), GEF South Asia Clean Energy Fund (GEF-SA), Asia Clean Energy (ACE) Fund and China Clean Energy Capital (CECC) – were selected from proposals made by 19 fund managers in response to a call from the ADB last July.

The largest, the MAP Clean Energy Fund (MAP) aims to invest a total of $400 million in 10 to 15 geothermal, wind and bio-ethanol projects across Asia, with a focus on Indonesia, India and Pakistan.

CEF III has a target size of $200-250 million and will make 15-20 clean energy investments in China.

GEF-SA is hoping to raise $200 million, and will make around 12 investments of $3 million–15 million each in clean energy companies and projects in Bangladesh, India, Nepal, Pakistan and Sri Lanka. The fund is jointly sponsored by Global Environment Fund, a US private equity firm, and Yes Bank, an India-based private sector bank specialising in renewable energy and clean technologies.

The ACE fund is also targeting $200 million, to make about 15 investments throughout Asia. Projects in its pipeline include palm oil projects, solar project expansions, and replacement of used transformers. It is also to invest in a solar photovoltaic business in Indonesia, a waste-to-energy project, biodiesel companies in South Korea, and a power plant rehabilitation project with a focus on China and India.

Finally, the CCEC fund has a target size of $100-150 million, and will make eight to 12 investments of $5 million to $30 million each in renewable and energy efficiency projects in China.