The Beijing-based Asian Infrastructure Investment Bank said that its board has approved $125 million in commitments to two private equity funds with the aim of promoting infrastructure development as well as environmental, social and governance standards in the region.
An AIIB news release Friday said AIIB will be the anchor investor, with a $75 million commitment, for the CITIC Capital Pan Eurasia Fund, a closed-end fund managed by Hong Kong-based CITIC Capital Holdings that is focused on resource efficiency, renewable energy, food and water safety, logistics, transportation and technology sectors in the region.
The fund, with a target size of $500 million, will have an initial closing in the first quarter of 2020, according to documents on the AIIB website.
AIIB will also commit up to $50 million for a co-investment sleeve with the fund.
AIIB will likewise be anchor investor, with a $50 million commitment, for the SUSI Asia Energy Transition Fund, which will focus on investments in renewable energy, microgrid projects, and energy efficiency and storage in the Association of Southeast Asian Nations region.
The SUSI Asia fund, to be managed by the Singapore arm of Zug, Switzerland-based SUSI Partners, is targeting a fund size of $250 million, with an initial closing in the first quarter of 2020.
AIIB will also commit up to $50 million for a co-investment sleeve with the fund.
An AIIB spokeswoman couldn't immediately provide further details.