Asia clean energy fund reaches $85m

Armstrong Asset Management has added $20m from the IFC since its Armstrong South East Asia Clean Energy Fund reached a $65m first close. It is aiming for $150m.

Armstrong Asset Management, a Singapore-based asset manager, has announced a $20 million commitment from the International Finance Corporation (IFC) for its Armstrong South East Asia Clean Energy Fund.

The fund, which had reached a first close on $65 million prior to the latest commitment, has a final close target of $150 million by August this year.

It had previously received commitments from two European development finance institutions – GEEREF of Luxembourg and DEG of Germany – and an unnamed Asia-based corporation.

The firm claims to have further soft commitments worth $63 million, which could potentially bring it very close to its final target.

The newly established fund will target development capital for small-scale renewable energy and resource efficiency projects in Southeast Asia.

At the beginning of this week, the first investment from the fund was announced in the development and construction of a 30-megawatt (MW) portfolio of solar projects in Thailand alongside Hong Kong-based energy company Symbior Energy.

Andrew Affleck, managing partner at Armstrong, said in a statement: “Over the last 12 months, the potential for renewables in Southeast Asia has become even more compelling. Supply side costs have continued to decrease, meaning that in a number of project cases around the region, subsidies are not required in order to make the economics work.”

The 10-year fund’s target markets include Thailand, the Philippines, Vietnam and Indonesia. Projects will typically generate up to 10MW of renewable energy from solar, hydro and wind sources. The fund will aim to invest in between 10 and 15 deals, with each investment ranging from $5 million to $12 million.

Armstrong Asset Management, which is based in Singapore, is focused on clean energy infrastructure assets. It has an eight-strong investment team.