Keppel, Asian Development Bank (ADB) and Enterprise Singapore (EnterpriseSG) have signed a memorandum of understanding (MOU) to jointly explore US$800 million ($1.046 billion) worth of energy transition, environmental sustainability and blended finance opportunities in Asia and the Pacific region.
According to an Aug 20 announcement, these energy and environmental projects are expected to contribute towards building the pipeline of “high-quality, proprietary infrastructure assets” for Keppel’s private funds and listed business trust.
“The cooperation on blended finance, which explores potential uses of concessionary financing, will further improve bankability, support development outcomes and help mobilise private investment for the projects,” says Keppel.
ADB, Keppel and EnterpriseSG will explore opportunities — initially in Southeast Asia — to support this cooperation with climate financing solutions, targeting a total project value in excess of US$800 million over the period of 2025 to 2030.
EnterpriseSG will also facilitate market access for Keppel through its network of over 35 overseas centres around the world, where it can connect Keppel to relevant in-market partners for potential project opportunities, navigate regulatory landscapes and identify available financing resources that Keppel can tap across different project milestones.
Keppel aims to develop and operate energy transition and environmental sustainability projects, spanning the decarbonisation of power generation, renewable energy, electric mobility and green buildings, as well as water treatment and resource recovery from waste, including bio-energy and waste-to-energy in the Asia-Pacific region.
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Collectively, when completed, these projects can abate at least 1 million tonnes of carbon dioxide equivalent (CO2e) per year, according to Keppel.
The MOU was signed at the headquarters of ADB in Metro Manila, the Philippines by Cindy Lim, CEO of Keppel’s infrastructure division; Bhargav Dasgupta, vice-president for market solutions of ADB; and Cindy Khoo, managing director of EnterpriseSG.
Lim says: “As the global push towards decarbonisation accelerates, the demand for financing to support clean energy transition and environmental projects across the Asia Pacific has never been greater. Keppel offers technical expertise and innovative solutions for large-scale sustainable infrastructure projects. Leveraging our unique strengths as a global asset manager and operator, we can also mobilise external capital from partners effectively. Coupled with ADB’s concessionary financing and regional cooperation expertise, as well as EnterpriseSG’s deal-matching and market access capabilities, our partnership is uniquely positioned to drive impactful change and help the region achieve green growth.”
Shares in Keppel closed 4 cents higher, or 0.67% up, at $6 on Aug 19.
