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Keppel Capital to invest $600m of SMA in global infrastructure projects

Many investors see infrastructure as an attractive asset class that is less susceptible to major economic cycles, short term fluctuations and provides sustainable, stable and predictable income streams.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

July 28, 2021 | 10:24 AM BST

Keppel Corp’s (SGX: BN4) asset management subsidiary Keppel Capital Holdings Pte. Ltd. has secured an aggregate of US$600 million of Separate Managed Accounts (SMA) from international financial institutions which the company said will use for financing global infrastructure projects with “long-term utility-like contracted cash flows”.

The Singapore-based company said the SMAs models have been “carefully put together” to ride on opportunities arising from the increasing trend of infrastructure investments.

Shares of Keppel Corp have inched up 0.57% today compared to the day before, with the company’s market capitalisation currently sitting at SG$9.61 billion ($7.07 billion).

Keppel Capital chief executive Christina Tan said: “Securing the Separate Managed Accounts from reputable institutional investors is a testament to Keppel’s value proposition of creating attractive investment opportunities.

“The recent volatility in the global markets underscore the demand for real assets with long-term stable cash flows. By leveraging the Keppel Group’s collective strengths, expertise and network in renewables, decarbonisation solutions, energy and infrastructure, which are Keppel’s focus areas under the Group’s Vision 2030, we provide investors bespoke access to these sectors.”

The CEO added that Keppel Capital is now well-positioned to collaborate and harness synergies from other members of the Keppel Group, not only its fund management capabilities and investor network from sister entities such as Keppel Asia Infrastructure Fund and Keppel Infrastructure Fund Management, but also the project development and asset management capabilities of the wider Keppel Group, which includes the conglomerate’s data centre arm, Keppel DC REIT.

The company said the abovementioned developments are not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year.

Keppel Capital manages as of the end of 2020, $37 billion in assets including in real estate, infrastructure, and data centres.

Its sister brand, Keppel DC REIT released yesterday that its portfolio of 19 facilities across eight countries in Asia Pacific and Europe has reached a value of US$3,086 million, up 2.7% on 2020.

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João Marques Lima

Founder and Editor, The Tech Capital

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