ADM Capital Launches Emerging Asia Renewable Energy Debt Fund

ADM Capital has received a USD 100 million seed commitment from AIIB to launch a new Asia-focused debt fund dedicated to renewable energy

Hong Kong-headquartered investment manager with specialist experience in Asia Pacific credit and sustainable investment – ADM Capital has announced that it has received a USD 100 million seed commitment from the Asian Infrastructure Investment Bank (AIIB) to launch a new USD-denominated Asia-focused debt fund dedicated to renewable energy called the “ADM Capital Elkhorn Emerging Asia Renewable Energy Fund”. The commitment is AIIB’s first to a private debt fund. 

“Our commitment at the outset will demonstrate to potential institutional investors the compelling opportunities in financing smaller companies working in the renewables sector in emerging Asian countries,” said AIIB Director General (Banking) Dongik Lee. “This group typically finds it difficult to attract capital from traditional sources like commercial banks due to their small size, complex risk profile and their need for a structured financing solution.”

The Fund, which will be ADM Capital’s tenth direct lending private credit fund, aims to address unfulfilled funding needs in the renewable energy sector in Asia by providing medium-term, senior and subordinated debt financing solutions to renewable energy projects and developers. ADM Capital has over 20 years of experience providing flexible credit solutions to Asian entrepreneurs unable to access traditional financing channels across Asia Pacific.

“ADM Capital was a pioneer in Asia’s private credit market and is the leader when integrating sustainability into the underwriting process. Renewable energy credit is the natural strategic expansion for ADM Capital,” said Chris Botsford, Co-founding Partner and Joint Chief Investment Officer. “We are excited to be partnering with the AIIB, mobilising capital for the region’s entrepreneurs in their bid to deliver modern and essential renewable energy solutions to the region.”

The firm is targeting a final close of USD 500 million in 2021 and is in discussion with a range of investors seeking to scale up investment in Asia’s renewable energy sector. The fund offers investors a timely opportunity to deploy capital into Asia’s fast-growing energy infrastructure while fulfilling positive impact investment objectives owing to the fund’s specific renewable energy purpose.

“There is intense pressure for companies and governments to meet the rapidly growing public demand for decarbonisation strategies across Asia Pacific economies,” added Botsford. “We intend to leverage the skills of our senior investment team and their private market expertise, ADM Capital’s origination networks and the deep energy sector experience of our specialist investment staff.”