The US development bank International Development Finance Corporation (DFC) has approved at least $570 million worth of investments in companies based in, or focused on, Southeast Asia, in the fourth quarter (July to September) of FY2023.
The deals, which involved debt financing and equity investments, were part of the more than $9.1 billion in commitments that DFC made for FY 2023 to advance developmental impact and strategic priorities around the world.
In a press statement, DFC said its board of directors approved a $100-million loan portfolio guaranty to Indonesia’s Bank Sahabat Sampoerna to support the expansion of financing to MSMEs and women-owned and -led enterprises in the country.
In Vietnam, DFC approved a $100-million loan to Tien Phong Commercial Joint Stock Bank to help expand the bank’s digital financing to underserved MSMEs in the country.
It also approved a $300-million loan to Vietnam Prosperity Joint Stock Commercial Bank to help increase lending to SMEs that focus on women’s economic empowerment and climate solutions.
At its sub-board level, DFC also approved a $20-million investment in Indonesian microfinance fintech platform Amartha to support on-lending to women micro-enterprises using a digital platform that connects lenders with underserved borrowers.
Beacon Fund, the credit fund of impact investment firm Patamar Capital, also secured a $50-million loan guarantee from DFC to support loans to businesses that are women-owned or -led in Indonesia, the Philippines, and Vietnam.
DFC said the commitments align with its five priority sectors: energy, infrastructure, health, agribusiness, and small business support.
“DFC’s commitments reflect the pressing need to address many of the world’s greatest challenges through the mobilization of private sector capital,” it said.
India gets $648.9m in commitments
India-based or -focused companies received nearly $650 million in commitments in the said period, per the DFC release.
Bulk of the commitments to India went to TP Solar Limited, a wholly-owned subsidiary of Tata Power Renewable Energy Limited. The company secured a $425-million loan commitment from DFC to finance the construction and operation of a greenfield 4GW solar cell and 4GW solar module manufacturing facility in India.
“This investment will support India’s ambitious program to increase renewable energy generation while advancing the global energy transition to diversify supply away from PRC dominance,” DFC said.
To help improve food security in India, DFC also committed a $33-million loan to India Food & Logistics to support the company in building grain silos that will modernise food storage in the country.
For the entire Asia, DFC’s commitment reached more than $1.3 billion during the reported period. These included commitments to Southeast Asia, India, and companies in Nepal and Timor-Leste.
“We are investing to strengthen health and food systems, while also supporting the small businesses that are vital to generating jobs and opportunity,” said DFC CEO Scott Nathan.
All of this activity, Nathan added, is in pursuit of DFC’s mission of cultivating a robust private sector to achieve sustainable developmental outcomes and strengthen the strategic position of the United States.
DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology.
The US lender also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets.
DFC earlier said developing countries face an infrastructure gap that is estimated to exceed $40 trillion by 2045. Approximately 771 million people around the world lack access to safe water, 1.7 billion people lack access to improved sanitation, and more than half of the people across Africa lack access to needed healthcare.