Keppel snags $815 million in separate managed accounts from global financial institutions

The move comes as Keppel Capital is seeing an increasing appetite for infrastructure investments.
The move comes as Keppel Capital is seeing an increasing appetite for infrastructure investments.PHOTO: KEPPEL CORP

SINGAPORE - Keppel Capital, the asset management arm of Keppel Corp, has secured an aggregate of US$600 million (S$815 million) in separate managed accounts (SMA) from international financial institutions.

The SMAs focus on global infrastructure projects with "long-term utility-like contracted cash flows", the firm said on Tuesday (July 27).

The SMAs were put together by leveraging Keppel Corp's expertise and network in renewables, decarbonisation solutions, energy and infrastructure, which are Keppel's focus areas under its long-term Vision 2030 transformation plan.

Keppel Capital chief executive Christina Tan said the firm is well positioned to collaborate with and harness synergies from Keppel Corp's sister entities such as Keppel Asia Infrastructure Fund and Keppel Infrastructure Fund Management.

The move comes as Keppel Capital is seeing an increasing appetite for infrastructure investments, which are often viewed as an attractive asset class with long-term stable cash flows. SMAs are "less susceptible to major economic cycles, short-term fluctuations and provides sustainable, stable and predictable income streams", it said.

Keppel Capital had assets under management of approximately $37 billion as at end-2020, including in real estate, infrastructure and data centre assets in key global markets.

The firm aims to create value and deliver sustainable returns for institutional and retail investors through a range of products such as listed real estate investment trusts, business trusts, private funds SMAs and pooled investment vehicles.

Tuesday's developments are not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp, which announces its results for the first half of the year on Thursday.

Last month, Keppel Corp announced a non-binding agreement to merge its offshore and marine arm with Sembcorp Marine following an extended period of low oil prices and persistent disruptions in the oil and gas sector.

Shares of Keppel Corp closed at $5.25 on Tuesday, unchanged from the day before.