The fund will use the money to mobilise investment for strategic infrastructure in South and Southeast Asia, which houses more than 25% of the world’s population.
Export Finance Australia (EFA), Australia’s export credit agency, has provided a $100m (€87m) debt facility to the Emerging Africa & Asia Infrastructure Fund (EAAIF), a blended finance vehicle managed by fund manager Ninety One.
The fund, which is part of the London-based Private Infrastructure Development Group (PIDG), will use the money to back infrastructure and renewable energy projects in South and Southeast Asia.
With a rapidly urbanising population of more than 2.5 billion, the South and Southeast Asia region offers significant investment opportunities in climate-resilient infrastructure, according to the EAAIF.
Yet funding gaps remain. In Southeast Asia alone, spending on clean energy represents only about 2% of the global total. Between 2021 and 2024, the region invested $72bn in energy on average, while more than $130bn was needed to meet its climate goals, according to an International Energy Agency report published last year.
Philippe Valahu, CEO of PIDG, called the partnership with the Australian government “a powerful endorsement” of its mission to mobilise capital for infrastructure in places that need it the most.
“This commitment strengthens our capacity to deliver transformative projects in high-growth markets, reinforcing the shared ambition between PIDG and the Australian government to accelerate inclusive growth and the region’s green transition,” Valahu said.
Regional resilience
The loan aligns with Australian government goals to build regional resilience in South and Southeast Asia and boost trade and investment links, according to the EFA.
“Our investment in EAAIF enables us to support a diverse pipeline of renewable energy and infrastructure projects while partnering with a proven fund manager and a globally recognised development finance platform,” said EFA managing director and CEO John Hopkins.
The EAAIF, which was established by the governments of the UK, the Netherlands, Switzerland, and Sweden, has committed over $3bn to more than 125 infrastructure projects in over 25 countries and 10 sectors in Africa and Asia since its foundation in 2001.
“By collaborating domestically, we are able to deliver resilient, climate-smart infrastructure to some of the fastest-growing yet underserved markets- bridging the financing gap and creating opportunities for people, communities and ambitious businesses across the region,” said Olivia Carballo, Ninety One managing director and Martijn Proos, co-head of its emerging market alternative credit strategy.
As previously reported by Impact Investor, the EAAIF in May announced it had raised $325m in a new debt finance package, which will enable investments of as much as $1bn in next-generation infrastructure in Africa and Asia by 2028. It attracted commitments from investors including Allianz Global Investors, Standard Bank and Sweden’s development finance institution, Swedfund.
