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Jun 29 2014

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The
IDB
Fund II, launched on the 40th anniversary of the
IDB
, is the largest private equity infrastructure fund dedicated to the 57 member-countries of the
IDB
.

The
IDB
Fund II is supported by the Public Pension Agency of the Kingdom of Saudi Arabia, the Public Investment Fund of the Kingdom of Saudi Arabia, the Ministry of Finance of the Kingdom of Bahrain and the Ministry of Finance of the Sultanate of Brunei Darussalam as founding investors, with aggregate commitments totalling $750 million for the first closing. A final closing with additional investors is targeted for early 2015.

The
IDB
Fund II is the successor to the $730 million
IDB
Infrastructure Fund I (the
IDB
Fund I), also supported by the founding investors, which achieved an IRR of 18 per cent and an investment multiple of 1.7 times across signature projects such as Air Asia in Malaysia, Saudi International Petrochemical Company (Sipchem) in Saudi Arabia and AES Oasis Ltd with power assets in Pakistan, Oman and Jordan.

“Building on the successful track record of
IDB
Fund I, the
IDB
and founding investors are nearly tripling the size of the
IDB
Fund II to $2 billion,” Ahmad Mohammad Ali said. “The fund will mobilise up to $24 billion of aggregate financing to support the development of key infrastructure projects in
IDB
member countries.”

IDB
and the founding investors have established ASMA Capital Partners, based in Bahrain, as a multi-fund asset management platform to manage the
IDB
Fund II.

The
IDB
Fund II will have a broad sectorial focus beyond core infrastructure sectors of power, telecommunications, transportation, and will include investment in oil and gas, refinery and petrochemicals, steel and aluminum, mining, logistics and an allocation for healthcare, education, and financial services.

Staff Report

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