AMMB Holdings, International Finance Corporation (IFC) and the Asian Development Bank (ADB) have launched an offshore private equity fund, which will invest in Asias water sector.

The Asia Water Fund has already secured a commitment of $69m from investors including IFC, ADB, Kumpulan Wang Persaraan and AmInvestment Group.

The fund will invest 70% of its portfolio in China and the remaining 30% in South East Asia, reports theedgemalaysia.com.

The portfolio will be diversified into municipal water supply and wastewater treatment, industrial water supply and waste disposal, desalination, river and lake rehabilitation, rural water and waste treatment and other green water ventures.

AMMB said the Asia Water Fund will also invite Japanese financiers to invest in the fund and will continue to raise funds until the end of 2011.