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The Asian Development Bank (ADB) has agreed to invest up to $95 million in Clifford Capital Holdings (CCH), a specialist financing and distribution platform for infrastructure and other real assets globally, headquartered in Singapore. ADB’s investment will help to fund CCH’s future growth plans, including in sustainable infrastructure financing in developing Asia.
The transaction comprises a $50 million investment from ADB and a $45 million investment from the Leading Asia’s Private Sector Infrastructure Fund (LEAP) to be administered by ADB. It is ADB’s first investment in a Singapore entity since the opening of its Singapore Office in March 2020. ADB will have a shareholding interest of 6.3% in CCH immediately post-closing and a pro forma shareholding of 10.8% once all equity capital committed has been fully deployed.
“Developing Asia and the Pacific needs $1.7 trillion annually in infrastructure financing through 2030 to maintain growth, tackle poverty and address climate change,” said Director General of ADB’s Private Sector Operations Department Mike Barrow. “CCH is uniquely placed to attract long-term institutional capital to this underserved market. As a major multilateral investor, we are pleased to support CCH and its subsidiaries through their next stage of growth.”
“We are delighted to welcome ADB as a strategic shareholder in CCH and to partner with LEAP,” said Group Chief Executive Officer of CCH Clive Kerner. “ADB fully supports our mission to provide innovative financing solutions to address the substantial infrastructure financing gap in Asia. Given the critical institutional role of ADB in the region and its experience in supporting tenable infrastructure development across Asia, we are confident that we have established the right partnership to complement our existing shareholders to capture new growth opportunities and generate sustainable value and long-term returns.”
Most infrastructure investment in Asia is financed by the public sector, but those resources are not enough to meet the region’s infrastructure financing needs. Greater public funding for COVID-19 responses will spur a greater reliance on private sector funding to close the gap. CCH’s focus on financial innovation through securitization can help to meet these financing needs. Through its innovative and competitive financing solutions, CCH can help to position Singapore as a full-service infrastructure financing hub in the region.
CCH is an integrated alternative investment platform with complementary companies, offering origination, distribution and investment management capabilities in the real assets sector, and operating on a financially sustainable and commercial basis. It aims to help address the substantial infrastructure financing gap in Asia, while closely aligning with Singapore’s economic growth initiatives in the infrastructure, maritime and other real assets sectors.
LEAP was established in 2016 with a $1.5 billion capital commitment from the Japan International Cooperation Agency. It is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.