The Asian Infrastructure Investment Bank (AIIB) has committed USD50 million to the TPG Rise Climate Global South Initiative Fund, and up to USD50 million in co-investments, to boost climate investment and the development of climate finance markets across AIIB members in Asia, the Middle East and Africa.
In partnership with ALTÉRRA, one of the largest climate investment platforms in the world, the Global South Initiative is a parallel vehicle to TPG Rise Climate II fund. It is designed to attract long-term private capital for high-impact climate opportunities in emerging and developing economies.
The TPG Rise Climate Global South Initiative Fund targets investments in sectors including energy transition, green mobility, sustainable fuels, sustainable materials and products, carbon solutions, and climate adaptation and resilience.
“Mobilizing private capital is one of AIIB’s core thematic priorities and fundamental to closing the climate investment gap in emerging markets,” said Kim-See Lim, AIIB Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients. “Through this partnership with TPG, AIIB is supporting the expansion of innovative climate solutions in emerging markets, while strengthening climate finance ecosystems across our members, in line with our corporate target to direct 50% of annual financing to private-sector-oriented operations by 2030.”
The fund is classified as Article 9 under the EU Sustainable Finance Disclosure Regulation, a designation for financial products with sustainable investment as an objective. AIIB’s participation should help catalyze additional private capital alongside TPG Rise Climate and other co-investors, amplifying the development impact of each dollar committed. It also supports commitments under the Paris Agreement and the United Nations Sustainable Development Goals.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About TPG
TPG is a leading global alternative asset management firm founded in San Francisco in 1992, with USD303 billion of assets under management and investment and operational teams around the world. TPG invests across a range of strategies, including private equity, impact, credit, real estate and market solutions. For more information, visit www.tpg.com.