ADB Plans to Invest $100M in Environment Fund
Wednesday, March 7, 2012
The Asian Development Bank is expected to invest about $100 million in a multinational fund that will be put up to boost investments in environment-related technologies and projects in developing countries like the Philippines.
The planned investment in the Climate Public-Private Partnership Fund has already been endorsed by Bindu Lohani, acting head of the ADB, to its board of directors.
It will be funded with contributions from developmental institutions led by the ADB and several private multinational investment firms.
“The fund’s concept was initially driven by the interest of a set of large institutional investors, who view climate change challenges in Asia as a compelling investment opportunity,” the acting head of the ADB said in his project recommendation report.
Under the proposal, ADB will make a direct investment in the fund worth $98 million. It will also infuse $1 million, or an amount equivalent to a 25-percent equity, whichever is less, into a company that will be put up to serve as the general partner of the fund. The general partner will be in charge of the fund’s management.
Another $1 million, or an amount equivalent to 25-percent equity, whichever is less, will be invested in a company that will be established to serve as limited partner of the fund.
Source: Inquirer Business (link opens in a new window)
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