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ADB-Japan joint fund accelerates dealmaking

The $1.5bn vehicle has allocated more than $200m to its first batch of projects, which includes an Indonesia geothermal plant and an Indian solar developer.

The Leading Asia’s Private Infrastructure Fund, a joint vehicle between the Asian Development Bank and the Japan International Cooperation Agency, will back an Indonesian geothermal power project as one of its debut transactions since its March creation. 

The LEAP is capitalised by $1.5 billion in equity from the JICA and managed by the ADB’s private sector operations department, targeting infrastructure projects through equity and debt investments. The ADB said the fund so far has financed over $200 million worth of transactions, which include a financing pledge for Indian solar developer ReNew Power announced last week. 

A total package of $109 million, which combines LEAP’s funding with a $70 million loan from ADB’s own capital and a $19 million cheque from the World Bank’s Clean Technology Fund, will support the development of the 80MW Muara Laboh geothermal power generation project in western Indonesia. 

The plant, developed by a joint venture between Indonesian geothermal power developer Supreme Energy, Japanese trading house Sumitomo Corporation and facilities manager ENGIE, has secured a 30-year power purchase agreement with domestic utility PLN, enhanced by 20-year support from the Ministry of Finance. 

Part of the project's financing will also be provided by the Japan Bank for International Cooperation and a set of commercial banks under a guarantee from Nippon Export and Investment Insurance.