ADB to give $86.2m for aviation fuel facility

The Asian Development Bank (ADB) signed an agreement on Wednesday to provide $86.2 million in financing to a waste-based aviation fuel-producing plant in Sheikhupura. In a statement, the ADB said it signed with SAFCO Venture Holding Ltd “a landmark $86.2m financial package to finance the construction and operation of a sustainable aviation fuel (SAF) facility in Sheikhupura — the first private sector-led SAF initiative in Asia and the Pacific. The financing includes $41.2m from ADB’s ordinary capital resources (OCR) and $45m in syndicated loans, including B-loans from The Emerging Africa & Asia Infrastructure Fund—an emerging market infrastructure debt fund owned by PIDG and managed by NinetyOne and ILX—an Amsterdam-based emerging market asset manager focused on SDG and climate private debt strategies. The International Finance Corporation is providing a syndicated parallel loan. ADB serves as the lender of record for the B-loans and the mandated lead arranger and book-runner for the financing package.