The Asian Infrastructure Investment Bank (AIIB) has committed a total of $125 million to Keppel Private Credit Fund III, the latest private credit vehicle of Singapore-listed global asset manager and operator Keppel.
In a statement, Keppel said AIIB’s commitment comprises a $75 million investment along with a co-investment sleeve of up to $50 million, lifting the fund’s total funds under management to more than $561 million.
The investment is AIIB’s first under a strategic partnership agreement that the two groups signed in June 2025, which aims to mobilise up to $1.5 billion of sustainable infrastructure investments and financing opportunities across the Asia Pacific.
The partnership agreement focuses on projects developed by Keppel and invested in through its private funds, per the announcement.
Keppel said Fund III is the third vintage in its private credit fund series, following Pierfront Capital Mezzanine Fund and Keppel-Pierfront Private Credit Fund, which AIIB backed in 2021.
Keppel’s private credit strategy provides bespoke loans to companies with infrastructure-like operating businesses across sectors, including renewables, transportation, telecommunications, logistics, and social infrastructure.
The fund made a $300 million first close in October 2024, securing commitments from top-tier global institutional investors, with Keppel as the sponsor, committing $100 million.
The fund has deployed about $260 million so far across core infrastructure, renewables, data centres, and social infrastructure projects, Keppel said.
It added that Asia Pacific’s infrastructure spending needs remain large, citing Asian Development Bank estimates that developing Asia needs to invest about $1.7 trillion a year in infrastructure until 2030 to sustain growth and respond to climate change.
“Meeting this demand at scale requires visionary partnerships that can mobilise both capital and expertise efficiently to deliver resilient, future-ready solutions,” Christina Tan, Keppel’s chief investment officer and CEO of fund management, said in a statement.
Tan said AIIB’s commitment to the fund was “a strong endorsement” of Keppel’s private credit platform and strategy, adding that the group aims to help narrow the region’s infrastructure gap while continuing to deliver “attractive risk-adjusted returns” for investors.
To date, approximately $260 million under Fund III has been deployed across core infrastructure, renewables, data centres, and social infrastructure projects in the region.
Since 2016, Keppel said its private credit fund series has deployed over $1 billion across 34 investments. More than half of these investments have been fully exited, delivering an attractive average return profile in the low- to mid-teens.
In the first nine months of 2025, Keppel raised about $5.1 billion across its infrastructure, urban renewal, education assets, and third data centre and private credit funds.
The Temasek-linked group reaped asset management fees of S$299 million in the period, it earlier said.
AIIB is a Beijing-based multilateral development bank established in 2016 to finance infrastructure and sustainable development projects across Asia and other regions. It is owned by more than 100 member countries.
