The transaction marks BII’s first direct financing into Southeast Asia and will help avoid 319,000 tonnes of CO2 emissions per year.
British International Investment (BII), the UK’s development finance institution and the Dutch entrepreneurial development bank, FMO are backing a Southeast Asian industrial renewables project which will help avoid as much as 319,000 tonnes of CO2 emissions per year.
BII and FMO have announced a joint loan commitment of $50m (€47m) to BECIS, a leading energy-as-a-service (EaaS) provider in the region.
This transaction sees FMO facilitating BII’s first direct financing into Southeast Asia.
The investment will support BECIS in growing its rooftop solar portfolio in South and Southeast Asia to nearly 350 MW by 2025, which will help avoid 319,000 tonnes of CO2 emissions per year.
Focus on climate change
Speaking to Impact Investor about the deal, Srini Nagarajan, managing director and head of Asia at BII said: “In Southeast Asia, we look at the emerging markets where development support is needed the most – Indonesia, Vietnam, and the Philippines, with a focus on climate finance. These countries have a strong need for decarbonisation and a just energy transition that supports people who are most vulnerable to climate change.”
Since 2023, BII has made several fund investments in the region that aim to address the global challenges of climate change from a wider industry spectrum such as clean energy solutions, the circular economy and climate tech start-ups.
In addition to that, they are also partnering with Asian Development Bank to address the region’s market demand for longer-tenor trade finance needed to support climate-related projects, particularly within the renewable energy sector, Nagarajan added.
“All these investments and opportunities we’re looking at are in line with our mandate. As the UK’s DFI, we play a key role in catalysing the market, mobilising private sector capital, and enabling a just energy transition in Southeast Asia,” he said.
Supported by local government policies, the nascent commercial and industrial solar sector is offering cleaner and lower-cost electricity to customers to displace consumption of on-grid power.
Jeesun Han, manager, energy at FMO, said: “BECIS’s service is valuable to its commercial and industrial consumers by meeting their high energy demand in cost-efficient and reliable manners from clean energy sources.”
Eren Ergin, CEO of BECIS, said: “The funding will enable us to further expand our operations and accelerate the adoption of sustainable energy solutions in the region.”
