Washington, D.C., January 23, 2024 - IFC today announced that it is investing $15 million in the Southeast Asia Clean Energy Fund II (SEACEF II), an investment platform that will provide equity for early-stage and growth-stage investments in energy projects in Southeast Asia.
Managed by Clime Capital, a Singapore-based fund manager, SEACEF II will be the first fund to combine public, private and philanthropic capital with a specialized focus on Southeast Asia. The fund will invest equity in utility-scale solar, wind and energy storage, in addition to helping businesses go to scale in areas ranging from rooftop solar, energy efficiency, electric mobility and grid management.
SEACEF II will target investments in Indonesia, Viet Nam and the Philippines, with the remaining capital expected to fund companies with a regional footprint across Southeast Asia.
IFC is set to make its inaugural investment as part of the recently disclosed global partnership with Allied Capital Partners (ACP). IFC's equity investment includes $10 million from IFC's own account, and $5 million from the Finland-IFC Blended Finance for Climate Program (BFCP).
Mohamed Gouled, IFC's Vice President of Industries, said: "IFC supports innovative, climate-focused equity investments aimed at strengthening the climate finance market across emerging markets, including Southeast Asia. Private equity funds can play an important role in bridging the gap in financing early-stage climate infrastructure projects, advancing the energy transition and reducing greenhouse gas emissions along the way. We are delighted to partner with Clime Capital to provide much-needed capital to utility-scale clean energy startups and climate transition initiatives in the region, especially in Indonesia, Viet Nam, and the Philippines."
Mason Wallick, Chief Executive Officer and Co-Founder of Clime Capital, said: "As time passes without sufficient progress in developing the critical resources to reduce carbon emissions, the planet needs more businesses focused on accelerating the low carbon transition to thrive. Clime Capital has proven that our unique combination of early-stage investment ability and clean-energy expertise applied through dedicated on-the-ground teams in Southeast Asia can make a real difference."
Along with the investment by IFC, SEACEF II's first closing was backed by Allied Climate Partners, British International Investment (BII), the Cisco Foundation, Australian Development Investments (ADI), The Netherlands' FMO, the Global Energy Alliance for People and Planet (GEAPP), Impact Assets, Norway's Norfund, and Sweden's Swedfund.
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About the Finland-IFC Blended Finance for Climate Program (BFCP)
The Finland-IFC Blended Finance for Climate Program (BFCP) seeks to catalyze innovative investments and unlock private financing into climate-smart projects in low-income developing countries, creating markets and opportunities for the private sector. The Program covers multiple geographies, sectors, and business models, including investments in renewable energy (including distributed/captive energy solution), energy efficiency, green buildings, climate-smart agriculture, and forestry, among others.
Originally Published: IFC