The UK’s development finance institution British International Investment (BII) is entering the Philippine market through the SUSI Asia Energy Transition Fund (SAETF), a Southeast Asia-focused energy transition infrastructure fund.
BII announced that it is committing $15 million to SAETF, which is managed by Swiss firm SUSI Partners, marking its first commitment in Southeast Asia under the current 2022-2026 investment strategy.
SAETF targets infrastructure investments across the energy transition spectrum, including renewable energy, energy efficiency, and energy storage projects, and focuses on emerging economies in Southeast Asia, including the Philippines. BII considers the Philippines as one of its priority markets in the region.
With this commitment, BII joins other development finance institutions, including AIIB, FMO, Swedfund, Norfund, and OeEB, as well as private investors in backing SAETF.
The fund, which made a first close of $81 million in 2021, has invested in the development of a ground-mounted solar PV plant in the Philippines via joint venture with regional developer Pacific Impact. It also committed to a pipeline of rooftop solar PV projects via the joint venture Entoria Energy.
“We have been investing across Asia for over 30 years. SAETF is an excellent re-entry point for BII into Southeast Asia and a clear statement of our ambition to provide climate finance and support innovation to meet the challenges from the climate crisis,” said Srini Nagarajan, managing director and head of Asia at BII.
BII’s chief executive Nick O’Donohoe earlier told DealStreetAsia that BII is looking to invest in “transformative” climate technology projects in Southeast Asia.
BII has previously concentrated its investments in Africa, particularly sub-Saharan Africa, and South Asia. It will now invest in Indonesia, Vietnam, Cambodia, Laos, and the Philippines, in both direct investments and funds.
Today, about 25% of the $10 billion portfolio is invested in funds, from 100% previously.
In a statement, BII said the commitment in SAETF marks the start of realising its ambitions to invest up to £500 million of climate finance in the Indo-Pacific region and forms part of its overall goal to target 30% of total new commitments to climate finance.
BII has a team of about 55 people in Asia, out of a total headcount of about 600, and will be setting up offices in Vietnam, Indonesia, and the Philippines, with a regional headquarters in Singapore.