PATRIZIA EMERGING ASIA SUSTAINABLE INFRA FUND

Team Europe investment to support a European asset manager to expand its investment operations into emerging Asia with a focus on sustainable infrastructure, in particular renewable energy, as well as digital and social infrastructure, sectors pivotal in advancing the green and digital transitions under the EU's Global Gateway strategy. By focusing on these sectors, the fund directly contributes to the goals outlined in the MIPs, promoting sustainable development and regional integration.

The Fund will predominantly target greenfield infrastructure investments in renewable energy, as well as digital and social infrastructure emerging Asia. The Fund is expected to have a strong focus on financing and supporting climate action and environmental sustainability in the target region.

This Fund investment supports a European asset manager in expanding into emerging Asia, targeting sustainable infrastructure, particularly sustainable energy, mobility, digital, and social infrastructure. These sectors are well aligned with the EU's Global Gateway strategy and EU regional priorities, including climate resilience, digital connectivity, and inclusive growth. The operation is also expected to contribute to EIB's priority objectives on Climate Action and Environmental Sustainability.

The Fund addresses market failures such as limited access to long-term capital, higher perceived risk, and insufficiently developed project pipelines, which hinder private investment. Addressing these gaps, the initiative contributes to improved capital mobilisation and project bankability in underinvested sectors.

The economic rate of return of the subprojects supported by the Fund are estimated as excellent.

The Fund is backed by two experienced investors and aims to create a solid pipeline of sustainable infrastructure projects reinforcing sustainable development and regional integration.

The EIB, acting as a cornerstone investor, is expected to crowd in other development finance institutions and private investors. It has already provided significant structuring input to the fund manager, helping shape the Fund's investment strategy and governance framework to align with international best practices and investor expectations.

The Fund will be required to have an environmental and social policy and the appropriate management systems in place so as to comply with the EIB's environmental and social requirements. The assessment of the environmental, climate and social impacts and risks will be part of the standard due diligence process that the fund will have to carry out for each portfolio company and any underlying investment and, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as the EIB's Environmental and Social Standards.

The EIB will require the Fund Manager to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement.