Armstrong Asset Management will invest up to $40 million (€29.2 million) in Blue Circle Pte Ltd to fund wind and solar projects in the Mekong Region, the Singapore-based asset manager said in a statement.
Under the deal, Armstrong will become a minority shareholder in Blue Circle, which is also based in Singapore, although the exact size of the stake was not specified.
The two parties are expected to work on a pipeline of over 600 megawatts (MW) of renewable energy projects in the Mekong Region, with these projects currently being evaluated or negotiated, according to the statement.
The agreement between the two Singapore-based companies also allows Blue Circle to access Seed Capital Assistance Facility (SCAF) funding, which is designed to help project developers overcome some of the challenges of greenfield project development.
Armstrong specialises in renewable energy and closed its Clean Energy Fund on $164 million last November.
It invested $30 million in Annex Power for solar PV and biogas projects in Thailand, Indonesia and the Philippines. Armstrong also bought an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand, according to the statement.
In April, Armstrong and Mandiri Investment Management entered into a co-investment arrangement to invest in renewable energy projects in Indonesia, focusing in particular on mini hydro-electric power plants.