Abu Dhabi’s Mubadala Investment Company has made a cornerstone investment in PAG’s first Asia Pacific renewable energy fund which has raised US$550m (€506m) at its close.

Mubadala said it committed the capital to PAG REN I, but it did not provide details on the size of its investment.

The fund, which aims to operate across developed Asia Pacific economies with a strong focus on Japan, also received capital commitments from pensions, sovereign wealth funds, and fund of funds investors in North America, Europe, and the Middle East.

Hammad Rahman, head of Asia Pacific – traditional infrastructure at Mubadala, said: “Mubadala is excited to extend our presence in Japan and the wider Asia Pacific Region alongside PAG, with our first investment in the country’s rapidly growing clean energy sector. 

“This investment will help reduce carbon emissions and the reliance on imported fuels in line with Japan’s domestic and international emission reduction targets. 

“In particular, the provision of sustainable energy solutions to the corporate and industrial sectors is a key thematic for our infrastructure strategy, and we are pleased to execute on this theme in a major global economy such as Japan,” he said.

J-P Toppino, co-founder and president of Hong Kong-based PAG, said: “Japan has a significant commitment to increasing solar power generation, and we are proud to support the country’s ambitious goals. We look forward to participating in Asia’s energy transition.”

James Buford, president and CEO of PAG Renewables, said: “The strong response to this fund demonstrates investor confidence in the need and opportunity to enable the transition from fossil fuels to clean, domestically produced sources of energy generation in Asia.”

“Demand from corporate customers in Japan who value protection from energy price volatility and clean energy attributes far outstrips current supply, and will drive the next phase of growth,” said Dimitrios Vavougyios, managing director and CIO of PAG in Japan. 

In July 2022, investment firm PAG launched a renewable energy business with a plan to invest more than US$1bn in Asia in the coming years.

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