Clifford Capital Holdings announces US$95 million investment from ADB
to support sustainable infrastructure development in Asia
17 September 2020
Published in: Straits Times and CCH Press Release
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By signing this landmark deal to support sustainable infrastructure financing in developing Asia, Asian Development Bank (ADB), as a major multilateral investor provides long term institutional capital to bridge the infrastructure financing gap.
Besides the funding, CCH will gain access to ADB’s resources and obtain a greater range of financial instruments.
Client Impact: Our emerging market clients may wish to consider this model of partnership with development financial institutions as a way to increase mobilisation of capital in infrastructure projects.
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The Asian Development Bank (ADB) will be injecting US$95 million (S$129 million) into Clifford Capital Holdings (CCH) , marking its first investment in a local entity following the launch of its Singapore office. This investment enhances CCH’s business capabilities, especially in providing innovative financing solutions to address the substantial infrastructure financing gap in Asia. As Kal Nargolwala, Group Chairman of Clifford Capital Holdings described, ”building on CCH’s strong track record, the strategic investment by ADB will help to consolidate Singapore’s position as the infrastructure financing hub in Asia.”
ADB will have a pro forma shareholding of 10.8 per cent once all equity capital committed has been fully deployed by 2024. It will also earn a board seat on CCH.
Mr Mike Barrow, director-general of ADB’s private sector operations department, said that the entity was attracted to invest in CCH not only because of its track record, but also the “quality of the investors already in Clifford Capital” - shareholders such as “Temasek, Prudential and DBS is extremely attractive and very valuable because these are key players in the space in Asia.”
The mutual benefits that this investment will have on ADB and CCH was further elaborated by Clive Kerner, Group Chief Executive Officer at Clifford Capital Holdings, “Given the critical institutional role of ADB in the region and its experience in supporting tenable infrastructure development across Asia, we are confident that we have established the right partnership to complement our existing shareholders to capture new growth opportunities and generate sustainable value and long-term returns.”
With ADB as a strategic shareholder in CCH, it provides the latter access to the former’s expertise and network, hence creating and capturing new growth opportunities for the latter.
The transaction comprises a US$50 million investment from ADB and a US$45 million investment from the Leading Asia’s Private Infrastructure Fund (“LEAP”), which is administered by ADB.
According to ADB’s estimates, Mr Barrow mentioned that “developing Asia and the Pacific will need $1.7 trillion annually in infrastructure financing through 2030 to maintain its growth momentum, tackle poverty and address climate change”
About Clifford Capital Holdings
It is a specialist financing and distribution platform for real assets globally across the debt capital structure, headquartered in Singapore. It provides innovative and sustainable financing solutions to complement mainstream markets across the entire debt capital structure.
The Group aims to build a globally competitive alternative financing platform closely aligned to Singapore’s economic growth initiatives in the infrastructure, maritime and other real assets sectors, and works in close collaboration with Singapore government agencies such as the Monetary Authority of Singapore, Economic Development Board, Maritime and Port Authority of Singapore and Enterprise Singapore.
About Asian Development Bank
It promotes social and economic development in Asia and the Pacific. It is an alliance of 68 countries - 49 of which are in the region. It assists its members and partners by providing loans, technical assistance, grants, and equity investments. With the launch of their Singapore office in March this year, they intend to tackle climate change, financing and building quality infrastructure, and managing urbanisation in the region, among other priorities.
About Leading Asia’s Private Infrastructure Fund
It was established in 2016 with a $1.5 billion capital commitment from the Japan International Cooperation Agency. It is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.