The Asian Development Bank (ADB) is putting $95 million towards Clifford Capital's future growth plans, including broadening its business capabilities to address the increased demand for sustainable infrastructure financing in Asia.
The transaction comprises a $50 million investment from ADB and a $45 million investment from the Leading Asia’s Private Infrastructure Fund, which is administered by ADB, according to an announcement on Thursday.
With the investment, ADB will have a shareholding interest of 6.3 percent in Clifford Capital (CCH) immediately post-closing and a pro forma shareholding of 10.8 percent once all equity capital committed has been fully deployed.
The transaction marks ABD's first investment in a Singapore entity since the opening of its office in the city-state in March 2020.
Strong Alignment
ABD's director general of private sector operations Mike Barrow noted that Developing Asia and the Pacific needs $1.7 trillion annually in infrastructure financing through 2030 to maintain growth, tackle poverty and address climate change, and that CCH is «uniquely placed to attract long-term institutional capital to this underserved market.»
«The strategic investment by ADB will augment the Group’s ongoing efforts to provide diversified financing solutions for underserved segments in the real assets sectors and help to consolidate Singapore’s position as the leading infrastructure financing hub in Asia,» Kai Nargolwala, CCH group chairman, said.
New Business Lines
Clifford Capital is 40.5-percent owned by Singapore state investor Temasek. Earlier this year, CCH acquired a 50-percent stake in fund manager Pierfront Capital in a bid to expand its business capabilities by providing private credit and mezzanine financing solutions.
