Keppel announced that the Asian Infrastructure Investment Bank has committed $75 million to Keppel Private Credit Fund III, alongside a co-investment sleeve of up to $50 million. Keppel said the combined commitment raises AIIB’s total support for the strategy to up to $125 million, and increases Keppel Private Credit Fund III’s funds under management to more than $561 million.
Keppel said the commitment represents AIIB’s first investment under a strategic partnership agreement the parties signed in June 2025. Under that partnership, Keppel and AIIB aim to facilitate and mobilise up to $1.5 billion of sustainable infrastructure investments and financing opportunities across the Asia Pacific, with an emphasis on projects developed by Keppel and invested in by its private funds.
Keppel described Keppel Private Credit Fund III as the third vintage in its private credit fund series, following Pierfront Capital Mezzanine Fund and Keppel-Pierfront Private Credit Fund, which it said AIIB also backed in 2021. Keppel said the latest AIIB commitment means the fund has already raised 170% of the third-party capital achieved by its predecessor fund.
Keppel said its private credit strategy provides bespoke loans to companies with defensive, infrastructure-like operating businesses across real asset sectors such as renewable energy, transportation, telecommunications, logistics, social infrastructure and other core infrastructure in Asia Pacific. Keppel said roughly $260 million from Keppel Private Credit Fund III has been deployed to date across core infrastructure, renewables, data centres and social infrastructure projects in the region.
Keppel said its private credit fund series has deployed more than $1 billion across 34 investments since 2016, and that more than half of those investments have been fully exited, delivering an average return profile in the low- to mid-teens. Keppel added that the development is not expected to have a material impact on its earnings per share or net tangible assets per share for the current financial year.
KEY QUOTES
“Rapid urbanisation and digital transformation are reshaping the Asia Pacific region, driving infrastructure needs in excess of US$1.7 trillion annually through 2030[1]. Meeting this demand at scale requires visionary partnerships that can mobilise both capital and expertise efficiently to deliver resilient, future-ready solutions in the face of climate and resource challenges. AIIB has been a longstanding partner with Keppel across multiple fund strategies and asset classes. AIIB’s commitment to KPCF III is a strong endorsement of our institutional-grade platform and differentiated private credit strategy. Building on our collaboration with AIIB, we aim to help narrow the infrastructure gap in Asia Pacific while continuing to deliver attractive risk-adjusted returns to our investors.”
Christina Tan, CEO of Fund Management and Chief Investment Officer, Keppel
“Building on our strong and established strategic partnership, AIIB’s investment in KPCF III underscores our continued commitment to working with Keppel in advancing Asia-Pacific region’s transition towards a more sustainable and low-carbon future. This collaboration reflects AIIB’s broader mission of mobilising capital and fostering partnerships that deliver long-term impact for our Members and communities.”
Kim-See Lim, Chief Investment Officer, Public Sector (Region 1) & Financial Institutions and Funds (Global) Clients, AIIB
