Highlights
- Commits $70 million to support SUSI Partners' Asia Energy Transition strategy and $25m to Navis Asia Credit Fund for dedicated credit in South-East Asia.
- Launch of a new co-investment platform with FMO and SUSI to build 500MW of greenfield renewable energy projects.
- With most of the region's energy demand being met by fossil fuel, the climate impact per dollar invested in its energy transition is among the highest globally.
British International Investment (BII), the UK's development finance institution and impact investor, today (Jan 22) announced new commitments of $95 million to support climate actions in South-East Asia.
BII is investing $70 million through a top-up commitment to the SUSI Asia Energy Transition Fund (SAETF) and a co-investment commitment to a new utility-scale renewable energy platform, Sustainable Asia Renewable Assets (SARA).
SARA has been set up jointly with BII, FMO and SUSI as part of SAETF to build a 500 MW portfolio of greenfield renewable energy projects across selected South-East Asian markets by the end of the fund life.
With new commitments from new and existing investors, SUSI has more than doubled the size of its South-East Asia-focused strategy from $120 million to $259 million (including direct co-investments). The funds are solely dedicated to sustainable energy infrastructure projects in South-East Asia.
Due to South-East Asia's growing position as a global manufacturing and industry hub, the region is projected to account for more than a quarter of global energy demand growth until 2035, according to the International Energy Agency. Given that nearly 80 per cent of South-East Asia's rise in energy demand has been met by fossil fuels since 2010, the climate impact per dollar invested in the region's energy transition is among the highest globally.
SAETF's current portfolio focuses on utility-scale renewable energy projects as well as distributed generation and energy efficiency projects with commercial and industrial customers across emerging South-East Asian markets. To date, the fund has invested in Vietnam, the Philippines, Thailand, and Cambodia.
BII committed $25 million to Navis Asia Credit Fund, managed by Navis Capital Partners. Its anchor commitment has helped the fund reach $135 million at its first close.
Addressing South-East Asia's underserved credit market, the fund will lend to mid-market corporates and projects in a wide range of sectors that enables regional economic growth and sustainable development. More specifically, BII's contribution will focus exclusively on climate-related investments in areas such as renewable energy, supply chain decarbonisation, sustainable logistics and sustainable real estate.
Srini Nagarajan, Managing Director and Head of Asia at BII said: "South-East Asia's evolving clean energy sector presents nascent yet great potential for climate investments. This is where development finance institutions like ours can play a pivotal role. We are delighted to work with like-minded and experienced partners such as FMO, SUSI and Navis to mobilise more private capital towards sectors and regions where climate finance is essential to support energy transition."
Nik Mehta, British High Commissioner to Singapore, said: "Today's $95 million commitment is a prime example of how the UK is working with international partners to drive sustainable investments across South-East Asia. This will channel global capital to where it's needed most to deliver practical solutions that support the region's energy transition."
These investments form part of our ambitions to invest up to £500 million of climate finance in South-East Asia and reach the overall goal to target 30 per cent of total new commitments to climate finance between 2022 and 2026.
