British International Investment (BII), the UK’s development finance institution and impact investor, and FMO, the Dutch entrepreneurial development bank, have made a joint loan commitment of $50 million to BECIS, an energy-as-a-service provider in Southeast Asia.
BECIS will use the capital to expand and provide energy solutions across Vietnam, the Philippines, Indonesia, Thailand, Malaysia, and India to meet the growing demand for clean and affordable energy within these countries, according to a statement.
BECIS offers rooftop solar, bio-energy, and energy efficiency solutions across Asia.
Through advanced technologies and strategic partnerships, BECIS strives to optimise energy consumption, boost the adoption of renewable energy sources, enhance operational efficiency, develop resilient energy infrastructure, and promote energy literacy within communities.
As BECIS brings its portfolio to 346MW by 2025, it aims to avoid 319,000 tonnes of CO2 emissions per year by offering cleaner and lower-cost electricity to its customers to displace on-grid power.
This financing also marks the first direct debt financing in Southeast Asia from the DFI. Last month, BII made its first direct equity investment alongside Japanese energy company Idemitsu Kosan (IKC) in Skye Renewables Energy Pte Ltd. (Skye), a Southeast Asia-focused renewable energy platform.
“The commitment to commercial and industrial renewables reflects the evolving landscape of energy production, where DFIs can play a key role by providing climate finance to support the region’s low-carbon transition. Collaborations with trusted partners like BECIS and FMO underscore the collective effort to mitigate climate change by reducing reliance on traditional on-grid electricity sources,” says Srini Nagarajan, Managing Director and Head of Asia at BII.
BII had told DealStreetAsia earlier that of the earmarked up to 500 million pounds (over $600 million) for climate-related investments in Southeast Asia through 2026, around half will be allocated for debt investments. The remaining capital will be earmarked for direct equity and select fund investments.
BII plans to make investment commitments worth $100 million in Southeast Asia this year, double from $50 million in 2023. The investor has been strengthening its internal capabilities in Southeast Asia since its re-entry, and it has been focused on building a team with deep local knowledge of Southeast Asia, particularly in Vietnam, Indonesia, and the Philippines, its three focus markets.
In December 2023, BII backed the vehicles of Singapore’s Circulate Capital, Global Environment Fund (GEF) Capital Partners, and Wavemaker Impact.
BII approved a $7-million investment commitment in Circulate Capital Ocean Fund I-B, the Asia-focused circular economy vehicle of Circulate Capital; a $25-million commitment to the latest climate-focused private equity vehicle of GEF South Asia Growth Fund III; and a $6 million commitment to support the debut fund of Wavemaker Impact, a climate tech venture builder in Southeast Asia.
