AIIB commits $50m to TPG Global South climate fund, with up to $50m for co-investments

The Asian Infrastructure Investment Bank has committed $50m to the TPG Rise Climate Global South Initiative Fund and will provide up to $50m more for co-investments. That gives a potential total of $100m, according to ESG News's report of the announcement on 20 October.

The vehicle is a parallel fund to TPG Rise Climate II and is run in partnership with ALTÉRRA. It is designed to draw long-term private capital into climate projects in emerging and developing economies across energy transition, green mobility, sustainable fuels, sustainable materials and products, carbon solutions, and climate adaptation and resilience. The fund is classified Article 9 under the EU Sustainable Finance Disclosure Regulation, the category covering products with sustainable investment as their objective.

The fund commitment is firm; the second $50m is a ceiling. The release does not identify the deals that would draw the co-investment tranche down.

AIIB has a corporate target of directing 50% of annual financing to private-sector-oriented operations by 2030. "Mobilizing private capital is one of AIIB's core thematic priorities and fundamental to closing the climate investment gap in emerging markets," said Kim-See Lim, AIIB's chief investment officer, public sector (Region 1) and financial institutions and funds (Global) clients.

The release did not disclose a target fund size, a final close date or the names of other co-investors.

ESG Capital Daily's earlier report on the commitment said the strategy targets $2.5bn, which would put AIIB's potential $100m at 4% of that figure.