Singapore-based Keppel Ltd has signed a Strategic Partnership Agreement with the Asian Infrastructure Investment Bank (AIIB) to jointly mobilize up to $1.5 billion for sustainable infrastructure investments across the Asia-Pacific region.
The agreement, which spans an initial period of five years until December 2030, aims to accelerate the development and financing of infrastructure projects that are aligned with global sustainability and connectivity goals.
The initiative will target key sectors such as renewable energy, power transmission and distribution, digital infrastructure, transportation, and urban services, per the announcement.
The collaboration will see Keppel leverage its asset management and operational platforms to originate and develop infrastructure projects, while AIIB will provide long-term capital through a mix of equity and debt instruments.
The partnership will also serve as a platform for knowledge exchange and the sharing of best practices, as both parties seek to address the infrastructure financing gap in rapidly urbanizing markets across the region.
“Despite increasing investments in green infrastructure and connectivity, a significant infrastructure gap persists across Asia Pacific, driven by the urgent demands of a growing and rapidly urbanising population,” said Christina Tan, Chief Executive Officer of Fund Management and Chief Investment Officer at Keppel.
AIIB’s Acting Chief Investment Officer for Region 1, Rajat Misra, said the partnership builds on an existing relationship and reinforces the bank’s commitment to investing in infrastructure that is resilient, environmentally responsible, and digitally enabled.
“Keppel is a valued partner with a strong track record in infrastructure. This agreement reflects AIIB’s continued commitment to partnering with leading institutions to finance infrastructure that is green, technology-enabled and regionally connected,” Misra said.
The partnership is expected to target projects in developing countries throughout Asia-Pacific and aligns with AIIB’s Corporate Strategy 2021–2030, which emphasizes green and inclusive infrastructure.
While no specific projects were named at this stage, Keppel said its pipeline includes developments across various sustainability-focused sectors.
The company has been expanding its footprint in infrastructure and clean energy through both private funds and listed investment vehicles.
The strategic agreement is not anticipated to have a material impact on Keppel’s earnings per share or net tangible assets per share for the current financial year, the company said in a statement.
Keppel Ltd is a global asset manager and operator focused on sustainability-driven solutions across infrastructure, real estate, and connectivity.
Headquartered in Singapore, it manages a diverse portfolio spanning over 20 countries, offering services related to renewables, clean energy, sustainable urban renewal, and digital infrastructure.
AIIB, a multilateral development bank headquartered in Beijing, was established to improve social and economic outcomes in Asia and now has over 100 members worldwide.
Its financing efforts prioritize infrastructure projects that promote environmental sustainability, cross-border integration, and technological innovation.
Business News Asia