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ADB Approves Over $210 Million in LEAP Financing in First Year of Operation

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Capital Market
Last Updated : Oct 09 2017 | 2:47 PM IST
The Asian Development Bank (ADB) has approved two projects worth over $210 million in debt financing from the Leading Asia's Private Infrastructure Fund (LEAP) in its first year of operation. ADB expects these initial projects will generate about $1.4 billion in total financing, including $264.5 million from ADB's own capital and an additional $890 million from cofinancing partners.

ADB is also actively processing over $500 million of LEAP debt and equity transactions for private infrastructure throughout the region. This includes potential projects in India, Indonesia, Myanmar, Pakistan, the Philippines, and Thailand.

LEAP is one of ADB's cofinancing vehicles dedicated to private sector infrastructure in Asia and the Pacific. The Japan International Cooperation Agency (JICA) supports the fund, launched in August 2016, through a $1.5 billion equity commitment. Combined with ADB's own capital and that of commercial partners, the fund is expected to provide financing of at least $6 billion and enables ADB to boost support for quality and sustainable infrastructure.

We are very pleased with the initial progress of the fund, which has made a tangible impact on private infrastructure delivery in the region within the first 12 months, said Yasushi Kanzaki, Senior Vice President of JICA.

Over the past year, LEAP financing for two transactions has been approved, with the projects now in their construction phase. The ReNew Clean Energy Project in India recently commissioned a 48 megawatt (MW) solar subproject in Telangana state and a 110 MW wind subproject in Karnataka state. The Muara Laboh geothermal power project in Indonesia has commenced drilling, secondary works, and construction.

LEAP is amplifying the impact we can have on our developing member countries, said Diwakar Gupta, ADB Vice-President for Private Sector and Cofinancing Operations. The initial renewable energy projects are helping the region in its transition to a low-carbon economy.

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First Published: Oct 09 2017 | 2:26 PM IST

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