IFC to inject $20m in clean water fund

The International Finance Corporation is planning to inject $20 million in the AmKonzen Asia Water Fund, a 10-year closed-end fund with a $100 million target that will invest in water infrastructure assets in China and Southeast Asia.

IFC: $20m for AmKonzen Asia Water Fund

The fund will be managed by AmKonzen Asia Water Investments Management, a 50-50 joint venture between Malaysian investment bank AmInvestment and Singapore-based water treatment and processing company Konzen Group via their wholly owned subsidiaries Malaysian Ventures Management and Konzen Capital. The firm will deploy about 70 percent of its resources in China and the remainder in Southeast Asian investments.

News of an AmInvestment and Konzen partnership first came in 2008 when PEI Asia reported on the consortium’s launch of an Asian water fund, which was targeting a $320 million close by 2009. It is not clear if this is the same fund, with a reduced target. AmKonzen could not be reached by press time.

AmKonzen said on its website that the fund will place an emphasis on municipal water opportunities in northern China to tackle the problem of acute water shortages. In southern China, where pollution control is critical, the fund will focus on industrial water treatment projects. In other Asian countries, it will identify environmentally friendly water projects for investments. The fund will invest in new plants and will acquire equity stakes in existing ones that either require refurbishment, or have the potential to expand.

“Chinese environmental technologies are now cutting edge and there will come a time soon when these will be exported to the rest of the world,” said Yeong Wai Cheong, group managing director and chief executive officer of Konzen, in a statement.

The Konzen Group designs, supplies and installs products used for water treatment and waste water management.

AmInvestment provides investment banking, Islamic banking, insurance and trust services to clients in Malaysia. Its private equity division makes late stage investments in manufacturing, business services, energy services and communications technology.