The Asian Infrastructure Investment Bank (AIIB) has approved USD60 million as a commitment to the STIC Asia Infrastructure Innovation Fund. The Fund will predominantly invest in small and medium-sized companies across digital infrastructure and green energy infrastructure sectors in South Asia, Southeast Asia and the Republic of Korea.
Data showed that 41 percent of small or mid-cap companies in Emerging Markets currently have unmet financing needs. This funding gap presently stands at around USD5 trillion, which is notably 1.3 times the current level of available financing. In addition, nearly 53 percent of Asia and the Pacific with 4.3 billion people are offline and lack access to digital infrastructure and advancements.
The objective of the commitment from AIIB is to foster technology-enabled infrastructure innovation in developing Asian economies by mobilizing private capital. It aims to foster the adoption and development of technologies in the above-mentioned sectors and contribute to mobilizing capital from Korean institutional investors toward developing Asia.
“In addition to strengthening relationships with key institutions in the region, this project would be AIIB’s first investment in a fund sponsored by a General Partner in the Republic of Korea,” said AIIB Director General, Banking Department (Region 1), Dongik Lee. “We are excited about this opportunity and strongly believe the fund would take Korea’s advanced technologies and make a positive impact on developing Asian economies.”
The Fund’s investment pipelines align well with AIIB’s Thematic Priorities and would lead to better value, quality and gains in productivity and efficiency of existing infrastructure and support infrastructure sector to mitigate the risk of falling behind the technological revolution.
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 104 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.
STIC Investments, Inc. (“STIC”) is one of the largest and most experienced private equity firms in Korea. STIC seeks to create growth and prosperity in economies across Asia through investing in companies that engage in promising businesses.
Starting its operations as a venture capital firm in 1999, STIC is now renowned as a leading private equity firm in Korea with proven 20-year track record and abundant investment experience in multiple business cycles. STIC’s global investor base includes sovereign wealth funds, public pension funds, insurance companies, financial institutions, family offices, endowments, foundations, and fund of funds from Korea, Southeast Asia, Middle East, and Europe.