Keppel announces first close of infrastructure fund at US$575 million
KEPPEL Corporation’s flagship open-ended infrastructure fund, Keppel Core Infrastructure Fund (KCIF), achieved its first close with initial capital and co-investment commitments of US$575 million.
The group said on Friday (Oct 13) that this is not expected to have a material impact on Keppel’s earnings per share or its net tangible assets per share in the current financial year.
Commenting on “a strong first closing” of the fund in Keppel’s flagship KCIF series, Keppel’s chief executive of fund management and chief investment officer Christina Tan said: “The robust demand reflects the appeal of critical-infrastructure assets with inflation-protected cash flows, and importantly, of fund products offered and managed by a trusted general partner such as Keppel.”
KCIF has an initial target size of US$2.5 billion.
The fund focuses on defensive and essential infrastructure assets across the Asia-Pacific’s developed markets, including assets with proven operating track records, long concessions with strong counterparties, and those that are regulated.
This would in turn provide stable, long-term and predictable cash flows, said Keppel.
“KCIF is primed to benefit from the strong urbanisation trends in the Asia-Pacific, which accelerate demand for essential infrastructure in the economic and social, energy transition and digital infrastructure sectors,” said Tan.
“KCIF will also draw on Keppel’s development capabilities and strong operational track record to undertake appropriate value-add initiatives, which will enable the fund to deliver sustainable and predictable returns to investors over the long term.”
Shares of Keppel were down S$0.05 or 0.7 per cent at S$6.71 as at the midday trading break, before the announcement.
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