IFC Catalyst Fund is a fund of funds investment program focused on funds investing in innovative ways to address climate change in emerging markets. The IFC Catalyst Fund is managed by IFC Asset Management Company LLC, a wholly-owned subsidiary of the International Finance Corporation (IFC). IFC is a member of the World Bank Group and the largest multilateral organization focused on private sector development in across emerging markets.
In addition to the IFC Catalyst Fund commitment of $20 million, earlier 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.
“We are excited to partner with the Armstrong Fund,” said Reyaz Ahmad, the Head of the IFC Catalyst Fund. “The capital, expertise, and innovation they 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.”
FMO, also known as the Netherlands Development Finance Company, is investing for the first time in the Armstrong Fund. “FMO is proud to invest in the Armstrong Clean Energy Fund. The fund will invest in small-scale renewable assets in South East Asia which will change the energy matrix into a cleaner and more sustainable one. We are pleased to work with investors who are committed to clean energy and energy and resource efficiency,”
Another investor in time for the Armstrong Fund third closing is Obviam, on behalf of the Swiss Investment Fund for Emerging Markets (SIFEM). The independent investment advisor specialises in long-term investments in emerging and frontier markets, on behalf of public, institutional, and private clients, including SIFEM, the Development Finance Institution (DFI) of the Swiss Confederation.
“Obviam is looking forward to a long term partnership with Armstrong, who offers a unique blend of in-depth Renewable Energy and South East 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 minimizing fossil fuel based dependence,”
“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. As part of our obligations to all investors, we will also be reporting on the underlying environment impact, including clean energy generated, and other developmental impact, such as support for local small and medium enterprises,”
The Armstrong Fund has a unique focus of providing development capital to smaller-scale renewable energy and resource efficiency projects in Southeast Asia’s emerging markets. On 16 August, 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.
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. 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.
About Armstrong Asset Management
Armstrong Asset Management is an independent asset manager, based in Singapore, focused on the clean energy sector in Southeast Asia’s emerging markets. Armstrong invests in small-scale infrastructure projects and is on track to achieve a target final closing of US$150 million by September 2013. Its multidisciplinary team consists of 8 investment professionals with deep sector knowledge and a collective 80 years of Southeast Asia operating experience. Armstrong integrates strict environmental, social and governance compliance into its investment process to deliver tangible benefits and reduce risks for all of its stakeholders. www.armstrongam.com
About IFC Catalyst Fund
IFC Catalyst Fund is a fund of funds investment program focused on funds investing in innovative ways to address climate change in emerging markets. The IFC Catalyst Fund is managed by IFC Asset Management Company, LLC, a wholly owned subsidiary of the International Finance Corporation (IFC). IFC is a member of the World Bank Group and the largest multilateral organization focused on private sector development in across emerging markets.
FMO (the Netherlands Development Finance Company) is the Dutch development bank. FMO supports sustainable private sector growth in developing and emerging markets by investing in ambitious entrepreneurs. FMO believes a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life. FMO focuses on three sectors that have high development impact: financial institutions, energy, and agribusiness, food & water. With an investment portfolio of EUR 6.3 billion, FMO is one of the largest European bilateral private sector development banks. www.fmo.nl
The Swiss Investment Fund for Emerging Markets (SIFEM) is the Swiss Development Finance Institution. It provides long-term finance to private equity funds and financial institutions in emerging markets. SIFEM's investment philosophy is guided by the belief that investing in commercially viable emerging market projects can provide investors risk adjusted returns, as well as generate sustainable, long-term development effects in local communities. SIFEM is fully owned by the Swiss Confederation and managed by Obviam, a privately owned management advisory group.
Issued by H2PC Asia on behalf of Armstrong Asset Management
For further information, please contact:
H2PC Asia +65-6222-
Mr Ken Hickson +65-8139 7472 firstname.lastname@example.org
Armstrong Asset Management
Mr Andrew Affleck +65-6922 9790 andrew.affleck@