The Asian Infrastructure Investment Bank (AIIB) has committed up to $125 million to Keppel Private Credit Fund III, boosting the fund’s total assets under management to more than $561 million as institutional investors step up allocations to Asia-Pacific infrastructure debt.
Global asset manager Keppel Ltd said on Tuesday that AIIB will invest $75 million in the fund, along with a co-investment sleeve of up to $50 million.
The investment marks AIIB’s first transaction under a strategic partnership signed with Keppel in June 2025, which aims to mobilise up to $1.5 billion of sustainable infrastructure financing opportunities across the region.
The partnership is expected to support projects developed by Keppel and financed through its private investment platforms, targeting sectors such as renewable energy, digital infrastructure and essential services.
Christina Tan, chief investment officer and CEO of fund management at Keppel, said the commitment reflects growing institutional interest in private credit strategies linked to real assets.
“Rapid urbanisation and digital transformation are reshaping the Asia-Pacific region, driving infrastructure needs in excess of $1.7 trillion annually through 2030,” Tan said, citing Asian Development Bank estimates. “AIIB’s commitment is a strong endorsement of our institutional-grade platform and differentiated private credit strategy.”
KPCF III is the third vintage in Keppel’s infrastructure-focused private credit series, following earlier funds backed by AIIB in 2021.
With the latest commitment, the fund has raised about 170% of the third-party capital secured by its predecessor, underscoring investor demand for yield-generating infrastructure debt amid tighter bank lending conditions.
The strategy provides bespoke loans to companies operating defensive, infrastructure-like businesses across sectors including transportation, telecommunications, logistics, social infrastructure and energy transition assets.
Keppel said approximately $260 million from the fund has already been deployed across core infrastructure, renewable energy, data centres and social infrastructure projects in Asia-Pacific.
Since launching its private credit platform in 2016, Keppel has invested more than $1 billion across 34 transactions. More than half of these investments have been fully exited, generating average returns in the low- to mid-teens, according to the company.
AIIB, a Beijing-based multilateral development bank with more than 100 member countries, said the investment reflects its mandate to mobilise private capital to support sustainable and low-carbon infrastructure across Asia-Pacific.
The fund commitment is not expected to have a material impact on Keppel’s earnings per share or net tangible assets for the current financial year.
Business News Asia