Armstrong Asset Management on Thursday announced the investments of several financial institutions to the Armstrong South East Asia Clean Energy Fund which will channel US$130 million into different renewable energy projects in the region.
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The IFC Catalyst Fund, the Netherlands Development Finance Company (FMO), and the Swiss Investment Fund for Emerging Markets (SIFEM) have committed to the Armstrong Fund, a private equity investment account dedicated to small-scale renewable energy and resource efficiency projects in emerging markets around Southeast Asia.
Singapore-based Armstrong Asset Management aims to invest in 10 to 15 projects that generate up to 10MW of power from sources such as solar, hydro, wind or biogas within ten years. The worth of each project can range from US$5 million to US$12 million.
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The capital, expertise, and innovation [Armstrong Fund] will bring to clean energy in Southeast Asia exemplifies the role private equity can play in helping to address climate change while generating financial returns
Reyaz Ahmad, IFC Catalyst Fund head
With this upsurge of new commitments, the Armstrong Fund is closer to achieving its goal of US$150 million by end of September or its targeted final closing.
The IFC Catalyst Fund, managed by the IFC Asset Management Company LLC, a subsidiary of World Bank-member International Finance Corporation, invested US$20 million to the Armstrong Fund. Back in May, it also provided the same amount, which was the first investment by the multilateral organisation in a fund focused on mitigating climate change in Southeast Asia.
Reyaz Ahmad, head of the IFC Catalyst Fund, said, “The capital, expertise, and innovation [Armstrong Fund] will bring to clean energy in Southeast Asia exemplifies the role private equity can play in helping to address climate change while generating financial returns.”
Similarly, Jurgen Rigterink, chief investment officer of FMO, which is investing in the fund for the first time, said, “We are pleased to work with investors who are committed to clean energy and energy and resource efficiency.”
The Dutch development bank, which is one of the largest such banks in Europe with an investment portfolio of 6.3 billion euros, supports innovative solutions for economic and social growth. Aside from energy, they are also focused on two other high impact sectors – financial institutions and agribusiness, food and water.
SIFEM, on the other hand, invested in the Armstrong Fund through Obviam, an independent investment advisor in Switzerland.
“Obviam is looking forward to a long term partnership with Armstrong, who offers a unique blend of in-depth renewable energy and Southeast Asia investment experience. We expect the fund to a play an important role in fostering the application of clean and renewable energies in the region, working towards minimising fossil fuel-based dependence,” said Claude Barras, chief executive officer of Obviam.
Currently, the Armstrong Fund has investments in solar photovoltaic and biogas power projects in Thailand, Indonesia and the Philippines worth US$30 million in partnership with Annex Power. In addition, it has invested in the construction and development of a 30MW portfolio of solar power projects in Thailand with Hong Kong-based energy company, Symbior Energy.
According to Armstrong Asset Management managing partner Andrew Affleck, the firm will ensure that the environmental and developmental impact will be reported to the investing institutions, as well as the amount of generated clean energy.
He added, “The Armstrong team will work with our investee companies to adopt best practices that adhere to IFC’s environmental and social performance standards, in addition to delivering the projected financial returns.”
