Armstrong SEA Clean Energy Fund raises US$130 Million at third closing
IFC Catalyst Fund, FMO, and SIFEM have agreed to commit to the Armstrong South East Asia Clean Energy Fund. The third closing brings the fund size to $130 million. The fund invests in small-scale renewable energy and resource efficiency projects in Southeast Asia.
IFC Catalyst Fund, managed by IFC Asset Management Company, LLC, a wholly owned subsidiary of the International Finance Corporation (IFC), is a fund of funds investment program focused on funds investing in innovative ways to address climate change in emerging markets.
In May this year, IFC approved a commitment in the Armstrong Fund of US$20 million, which was the first investment by IFC in a private equity fund dedicated to clean energy in Southeast Asia.
Prior to IFC's commitment in May 2013, earlier commitments at the initial close of the Armstrong Fund in August 2012, totaling US$65 million, had come from two European development finance institutions GEEREF and DEG; and an Asian-based corporation.
FMO, also known as the Netherlands Development Finance Company, is investing for the first time in the Armstrong Fund.
Another investor in time for the Armstrong Fund third closing is Obviam, on behalf of the Swiss Investment Fund for Emerging Markets (SIFEM).
Recently the Armstrong Fund announced its commitment of up to $30 million to finance an initial pipeline of solar photovoltaic (PV) and biogas power projects, developed by Annex Power, in Thailand, the Philippines and Indonesia. In May, the Fund announced its first investment in the development and construction of a 30 MW portfolio of solar projects in Thailand, alongside Hong Kong-based energy company, Symbior Energy.
The 10-year Armstrong Fund expects to make a total of between 10 to 15 investments, each ranging from US$5 million to US$12 million. Projects of a typical size would generate up to 10 MW from renewable energy resources of solar, hydro, wind or biogas.
Source: Armstrong Asset Management