Hong Kong-based investment manager, ADM Capital, has unveiled an Asia-focused debt fund dedicated to renewable energy fund that is backed by the Asian Infrastructure Investment Bank (AIIB).
The ADM Capital Elkhorn Emerging Asia Renewable Energy Fund is US dollar-denominated and will launch with US$100 million in seed capital from the AIIB.
It is ADM’s tenth direct lending private credit fund but the first to address the renewable energy sector in emerging Asia and the first to have the backing of the AIIB.
According to AIIB director general, Dongik Lee, such a fund is designed to offer financing to smaller companies working in the renewables sector that find it harder to attract capital from commercial banks because of their small size, complex risk profile and their need for a structured financing solution.
The fund is targetting a final close of $500 million in 2021. It also recruited former energy banker, Nicolas Le Clerc, in July 2020 as managing director for renewable energy.
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