The Asian Infrastructure Investment Bank (AIIB) announced that it will anchor the Aberdeen Standard Investcorp Infrastructure Partners’ (ASIIP) new regional fund (the Fund) by committing USD90 million to its first close. ASIIP had also received a capital commitment from the Public Investment Fund (PIF) for up to 20 percent of the Fund’s total size.
The Fund aims to participate in the economic transformation of the Gulf Cooperation Council (GCC) and the wider Middle East and North Africa (MENA) region. With environmental, social and governance principles and the United Nations Sustainable Developments Goals at the heart of its philosophy, the Fund’s mission is to deliver solutions in health care, education, water, mobility and digital infrastructure that will benefit local communities and future generations.
The GCC needs to increase infrastructure investment urgently to accommodate a 30-percent increase in population and a gradual increase in urbanization. Given current fiscal pressures, attracting more private capital is the key to meeting this funding gap. AIIB’s contribution will not only directly mobilize private capital the region needs by helping secure its first close—it will also provide a halo effect that will encourage other investors to contribute to the Fund.
“This is AIIB’s first commitment to an infrastructure fund in the region, which enhances the Bank’s exposure and contributes to the diversification of the Bank’s existing portfolio,” said AIIB Director General (Banking) Najeeb Haider. “By partnering with a leading global fund manager, the investments will also allow AIIB to leverage co-investment opportunities to acquire relevant market knowledge and gradually build sector expertise. Investing in infrastructure is critical for supporting the region’s long-term economic growth. AIIB’s participation will catalyze interest from Asian institutional investors in the Fund and unlock potential for the region’s infrastructure development.”
Sir Michael Fallon, Chairman of Aberdeen Standard Investcorp Infrastructure Partners said: “When we launched ASIIP, we combined Aberdeen Standard Investments’ strong track-record of investing in social infrastructure projects with Investcorp’s long-standing experience in the region, creating a vehicle that invests in sustainable core infrastructure projects. With AIIB’s commitment, we will be able to contribute to the post-COVID-19 economic recovery in countries across the Middle East while generating value for our shareholders.”
Additional information about the project can be found on AIIB’s website.
About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. We began operations in Beijing in January 2016 and have since grown to 103 approved members worldwide. We are capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Working with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
About Investcorp
Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes and infrastructure. Since our inception in 1982, we have focused on generating attractive returns for our clients while creating long-term value in our investee companies and for our shareholders as a prudent and responsible investor.
Investcorp has today presence in 12 countries across the US, Europe, GCC and Asia, including India, China and Singapore. As of June 30, 2021, Investcorp Group had US $37.6 billion in total AUM, including assets managed by third party managers, and employed approximately 430 people from 45 nationalities globally across its offices.
