KKR and Global Infrastructure Partners (GIP) have formed a coalition that includes Temasek, GIC, BlackRock, Rockefeller Foundation and Allied Climate Partners, which has pledged to invest US$25bn (€23bn) to develop clean infrastructure projects in Asia.
Formed under the umbrella of Indo-Pacific Economic Framework for Prosperity (IPEF), the coalition, known as the Indo-Pacific Partnership for Prosperity (IP3) will undertake a slew of projects to support the region’s transition to green economy.
In a joint statement, KKR and GIP said: “The coalition estimates that its members, taken together, have over US$25bn in capital that can be deployed in Indo-Pacific emerging market infrastructure investments in the coming years.”
“GIP and KKR are proud to be leading this effort to help catalyse and enable infrastructure investment in the Indo-Pacific,” said Matt Harris, GIP founding partner and co-chairman of the investor coalition.
“There is a significant need to accelerate infrastructure investment to support Indo-Pacific countries in achieving their economic ambitions,” said Joe Bae, co-CEO of KKR and co-chairman of IP3 and the investor coalition.
IPEF held an investor-matching forum in Singapore on Thursday. Singapore’s Ministry of Trade and Industry said some 20 infrastructure projects, described as “investment-ready”, had been identified.
The initial batch of projects, worth US$6bn collectively, ranges from industrial parks, special economic zones, energy, agriculture, aquaculture, waste management, and water and transport sectors.
The ministry said some US$23bn worth of potential projects were shortlisted from 69 sustainable infrastructure projects they had been selected from more than 300 business proposals submitted.
US Secretary of Commerce Gina Raimonda said the US$25bn committed by the coalition was “concrete money coming into this region by investors who are here looking for deals”.
At the event, Raimondo also announced that I Squared Capital was also planning to commit US$1.5bn to energy transition and digital including projects in emerging markets in the region.
IPEF, established by the US two years ago, has 13 Asian countries as members and it is supported by such agencies as the US International Development Finance Corporation and an IPEF Catalytic Capital Fund, which is pooling resources to expand the pipeline of bankable clean-economy infrastructure projects.
The Catalytic Capital Fund is in the process of raising an initial funding of US$33bn, with the objective of catalysing an additional US$3.3bn of private investments for countries that are eligible to receive government aid.
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