Keppel Secures $125 Million From AIIB for Private Credit Fund

The Beijing-based development bank is contributing a $75 million commitment alongside a co-investment sleeve of up to $50 million. This capital injection into Keppel Private Credit Fund III follows a previous agreement between the two entities to facilitate up to $1.5 billion in sustainable investments. The partnership specifically targets projects developed by Keppel and financed through its private fund vehicles.

Bridging the Infrastructure Gap

According to Christina Tan, Keppel’s chief investment officer, the region faces an infrastructure funding gap exceeding $1.7 trillion annually through 2030. This demand is driven by rapid urbanization and a shift toward digital transformation. To date, Keppel Private Credit Fund III has deployed $260 million into sectors including renewables, data centers, and social infrastructure. Since 2016, Keppel has deployed more than $1 billion across 34 investments through its private credit series.

This expansion comes at a challenging time for the broader environmental, social, and governance (ESG) sector. Despite the momentum behind Keppel's fund, global sustainable open-end and exchange-traded funds recorded approximately $27 billion in net outflows during the fourth quarter of 2025, according to Morningstar data. The Keppel-AIIB partnership suggests that institutional appetite remains for targeted, high-impact infrastructure credit despite broader market volatility.