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Multicountry: STIC Asia Infrastructure Innovation Fund

SUMMARY

STATUS
Approved
MEMBER
Multicountry
SECTOR
Financial Institution
E&S CATEGORY
FI
PROJECT NUMBER
000480

FINANCING

APPROVED FUNDING
USD60 million
FINANCING TYPE
Nonsovereign

TIMELINE

CONCEPT REVIEW
March 2021
APPRAISAL REVIEW/FINAL REVIEW
September 2021
FINANCING APPROVAL
October 13, 2021

OBJECTIVE

The Project’s objective is to foster Technology-enabled Infrastructure innovation in developing Asian economies through mobilizing private capital.

DESCRIPTION

AIIB will invest in STIC Asia Infrastructure Innovation Fund – the parallel fund (the “Fund”) of STIC Global Innovation Growth Fund (the “Main Fund”). The Fund and the Main Fund are closed-end growth capital funds with a total target size of USD480 million, and the proposed AIIB commitment is USD60 million in the Fund. The Fund will invest in small/mid-cap companies in the Digital Infrastructure, Transport & Logistics, Smart City, Social Infrastructure, and Green Energy Infrastructure sectors in Southeast/South Asian economies and the Republic of Korea.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB’s Environmental and Social Policy (ESP) is applicable to this Project. The Project has been placed in Category FI, because the financing structure involves the provision of funds through a financial intermediary.

The Fund Manager has prepared an Environmental, Social and Governance Framework (ESGF) in accordance with AIIB’s Environmental and Social Framework (ESF), including the Environmental and Social Standards (ESSs) and equivalents such as IFC Performance Standards and the Bank’s Environmental and Social Exclusion List (ESEL). The ESGF will be applicable to all projects. AIIB has reviewed the ESGF to confirm that the requirements of scoping, screening, categorization, monitoring and grievance redress is adequately met. AIIB will require prior review and approval of the first three sub projects and thereafter for all Category A and selected Category B subprojects. The Fund’s approximate pipeline (Digital Infrastructure, Smart City, Transport & Logistics, Green Energy) has been mutually agreed and is aligned with AIIB’s sector strategies and geographies. Coal mining, coal transportation and coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will be excluded from eligibility for financing under the Project.

The Fund Manager will be required to disclose the name, industry and location of portfolio companies supported with AIIB’s proceeds on its website within twelve months from closing an investment. The Fund will be required to create an External Communication Mechanism (ECM) to address third-party views, enquiries or concerns regarding their own ES processes and outcomes, as well as ES impacts and performances of their portfolio investee companies. In addition, the Bank will require the Fund, with respect to investee companies using AIIB proceeds, to disclose at an appropriate time the required ES documentation at the investee level, as well as information on the Grievance Redress Mechanism (GRM) and the Project affected People's Mechanism (PPM). The Fund will require portfolio investee companies to establish subproject-level GRMs to address concerns and grievances from both investee company staff and Project-affected people. The Fund Manager will monitor these aspects as part of its portfolio monitoring process.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Byeongwan Kim

Investment Officer

byeongwan.kim@aiib.org

 

Kishlaya Misra

Investment Officer

kishlaya.misra@aiib.org

IMPLEMENTING ENTITY

STIC Investment Inc.

Kyunghyung Lee

Managing Partner

daniel@stic.co.kr

 

Hanju Lee

Managing Director

hanju.lee@stic.co.kr

PROJECT DOCUMENTS

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