September 18, 2020
On Sept. 17, the Asian Development Bank (ADB) signed a share purchase agreement with Clifford Capital Holdings (CCH), a financial institution headquartered in Singapore, by drawing on the JICA-supported Leading Asia’s Private Infrastructure Fund (LEAP). Financing provided by the ADB will include $50 million in direct investment and $45 million in financing from the LEAP fund.
CCH is a company with multiple affiliates that provide services such as infrastructure project origination, securitization of existing loan obligations, and investment management. Its business aims include closing financial gaps in sustainable infrastructure projects in Asia. Financing provided to CCH will support the company's growth plans and enable support of sustainable infrastructure projects in developing countries of Asia. Strengthening relationship with CCH for sustainable infrastructure projects in Asia is well aligned with the “Initiative on Overseas loan for ASEAN” announced by the Government of Japan at the 35th ASEAN Summit in 2019.
While most infrastructure projects in Asia receive support from the public sector, it alone cannot provide support sufficient to fill the need for infrastructure financing in the region. Currently, responding to the COVID-19 crisis necessitates extensive use of public funds, which makes utilization of private funds of greater importance than ever. Innovative initiatives such as CCH’s securitization of infrastructure financial obligations are expected to contribute greatly to filling the funding gap in the demand for infrastructure financing.
The LEAP Fund is a part of the follow-up measure for the “Partnership for Quality Infrastructure,” which was announced by the Japanese government on Nov. 21, 2015. Targeting high quality private infrastructure projects in the Asia-Oceania region, the fund provides assistance for such projects organized under various arrangements, such as public-private partnerships. In March 2016, JICA approved a $1.5 billion investment in private sector investment financing for the LEAP Fund. The LEAP Fund provides support for a wide range of sustainable infrastructure projects undertaken by the private sector in ADB member countries of the Asia-Pacific region, and is directed at projects in fields such as reduction of greenhouse gas emissions, energy efficiency, and provision of medical services at reasonable prices.
JICA will continue its collaboration with countries and international organizations to promote quality infrastructure investment and contribute to social and economic development in developing countries and regions based on the Sustainable Development Goals (SDGs).