Latest news with #BII
Bloomberg
15-07-2025
- Business
- Bloomberg
Zambian Small Businesses Get $70 Million Boost to Unlock Growth
Britain and Sweden's development-finance arms are partnering with the Zambian National Pension Scheme Authority to launch an investment platform backed by an initial $70 million to provide capital for the southern African nation's small and medium-sized businesses. Growth Investment Partners Zambia was launched in the capital, Lusaka on Tuesday. British International Investment put up $37.5 million alongside commitments of $17.5 million from Napsa and $15 million from Swedfund, they said in a statement.
Business Times
07-07-2025
- Business
- Business Times
Asean needs track record in returns from ESG projects to attract private capital
[SINGAPORE] South-east Asian markets need to build a track record of delivering returns on projects aligned with environmental, social and governance (ESG) objectives to attract more private-sector capital, said an executive of the United Kingdom's development finance institution. Srini Nagarajan, who is managing director and head of Asia at British International Investment (BII), noted that, for that to happen, the region needs to develop a regulatory framework that is steady and favourable towards sustainability-focused investments, as well as streamline the processes in executing such projects, such as in land acquisition rights, grid infrastructure and transmission networks. This is all the more important in the current environment where interest rates are elevated, as the incentives for investing in emerging markets have become much more strained, added Nagarajan, who was speaking with The Business Times. 'South-east Asia lacks bankable opportunities in the energy transition space... Private investors will come, provided there is a track record of having made money. That's very, very critical... Once you have the track record, the belief in the overall system, goes up substantially,' he said. 'That's how China and India were able to attract private capital. So I think these (South-east Asian) countries are in an evolution stage in that journey. So we need more and more bankable opportunities in these markets. There is a lot of money waiting to come from the OECD (the Organisation for Economic Co-operation and Development) markets in Asia and also the West.' As a region made up predominantly of emerging markets, the higher risks involved in investing in South-east Asia – whether actual or perceived – have often either kept investors away, or resulted in expectations of a higher premium on returns. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up This has presented a challenge especially in energy transition investments, as sustainable-energy infrastructure tend to be capital-intensive projects. As a development finance institution, BII's role is to catalyse such private investments by de-risking projects through a patient and flexible approach to risk and returns so as to maximise development impact. BII entered the South-east Asian market in early 2023 – as part of its expansion plan in Asia – with a mandate of deploying £500 million (S$869.6 million) by 2026 to support the region's energy transition towards a low-carbon economy. It has committed more than £206 million thus far, including a US$80 million partnership with a debt-financing platform, Pentagreen Capital, that has Temasek and HSBC as its founding shareholders. The capital is also deployed via two other investing platforms – Skye Renewables and Sustainable Asia Renewable Assets – which BII has established with other partners. Besides such platforms, it also invests directly through debt, equity or a hybrid of both – which is known as mezzanine – and indirectly through funds, as well as provides loans to commercial banks to help small and medium-sized enterprises become more environmentally sustainable. As at the end of 2023, BII's portfolio value in South-east Asia was US$53 million across 27 companies. As a whole, it has committed to channel 30 per cent of its annual new commitments towards climate, and South-east Asia is an important market for BII to deliver on these mandates. Investment focus The impact investor's investment focus in the region are: utility-scale clean-energy projects, commercial and industrial power generation for corporates, water and waste management, electric vehicles (EVs) and EV infrastructure, as well as waste-to-energy facilities. In particular, BII is prioritising markets including Indonesia, the Philippines, and Vietnam, given their vulnerability to the impacts of climate changes, reliance on fossil fuels, lack of bankable projects, as well as significant need for private capital. 'I think that's where our capital is much more relevant – in these markets. South-east Asia has very diverse markets, with varying degrees of infrastructure development and regulatory environment, which is still evolving. 'And the private-sector investments into the area of renewable energy are very important,' said Nagarajan. Given its role in mobilising third-party capital, BII takes on high risks in early-stage projects, with the view of bringing in commercial investors once cash flow is generated. Nagarajan pointed out that, while BII invests in five-year strategy cycles, it has to ensure that its investments are aligned with the timelines of climate initiatives and that these projects do not face premature exits. As a provider of patient capital, BII said it can afford to act countercyclically and look beyond headline risks. Hence, while it would definitely have to exit businesses and recycle its capital into newer investment streams, it does not do this due to constraints in a fund's life. Rather, its exits are a result of businesses maturing and being able to attract more commercial capital, and thus requiring less development capital.
Entrepreneur
07-07-2025
- Business
- Entrepreneur
BII Commits $803 million Worth Impact Investments in Asia
The amount is significantly bigger than that of 2023 when BII invested GBP 245 million in Asian companies and a further GBP 225 million in businesses with operations spanning Asia and Africa. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. British International Investment, the UK's development finance institution and impact investor, has announced its commitment of GBP 626 million (USD 803 million) to Asian businesses in 2024 to support inclusive economic growth and combat the climate emergency. The amount is significantly bigger than that of 2023 when BII invested GBP 245 million in Asian companies and a further GBP 225 million in businesses with operations spanning Asia and Africa. BII has said that the increase in investment was despite the difficult investment environment caused by macroeconomic headwinds. BII's total net assets currently increased to GBP 9.9 billion up from GBP 8.5 billion in 2023, while post-tax profits improved to GBP 213.3m compared with a GBP 44 million loss in 2023. Globally BII invested GBP 1.75 billion in 2024. The figures are contained in BII's Annual Review, which was published today. In total, BII invested USD 903 million in climate finance in 2024, 41 per cent of its overall commitments for the year. This compares with just USD 104 million in 2020. The company's climate finance assets now make up over 26 per cent of its entire portfolio, up from just over 15 per cent in 2020. Over the last three years, BII has invested over USD 2 billion in climate finance. According to BII, based on all direct renewable energy investments in BII's 2023 portfolio, 1.5 million tons of CO2e emissions were avoided on an attributed basis, a 54 per cent year-on-year increase. This was driven by a growing renewable asset base in the portfolio and increases in the amount of renewable power produced. Srini Nagarajan, Managing Director and Head of Asia at BII, said, "Our 2024 investment figures demonstrate our steadfast commitment to our Asian markets as we focus on delivering inclusive economic growth and meeting the challenge of the climate emergency. BII will continue to play a pivotal role in mobilising private capital, particularly for climate finance across South and South-East Asia." BII also made GBP 499 million of gender finance commitments in 2024 and GBP 880 million of commitments to the poorer and most fragile countries across the regions where it invests.
Economic Key
02-07-2025
- Business
- Economic Key
British International Investment (BII) Signs Over $300 Million Agreements
British International Investment (BII), the UK's development finance institution and impact investor, has signed over $300 million in agreements to support two pioneering renewable energy projects in Egypt – a new 1.1GW Gulf of Suez Wind Farm and a 1GW integrated solar and battery storage project with Scatec. The agreements reflect BII's investment plan to accelerate Egypt's energy transition and build climate-resilient infrastructure that stimulates growth in North African countries. The Gulf of Suez Wind Farm, a $1.05 billion project and Africa's largest onshore wind development, is expected to generate over 4,300 GWh annually, helping to avoid 2.2 million tonnes of CO₂ emissions per year. BII's $190 million investment forms part of a broader $707 million in long-term debt financing with a consortium of development finance institutions (DFIs) including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), DEG – the German development dinance institution (DFI), the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The project builds on Egypt's Nexus of Water, Food & Energy (NWFE) programme and will create over 10,000 jobs, placing it in the top 30% of BII's power portfolio in terms of employment-to-cost ratio. BII has also signed an agreement to co-finance Egypt's first integrated solar photovoltaic (PV) and battery energy storage system (BESS), in partnership with Scatec, AfDB, and EBRD. The $475.6 million project – representing 80% of the total capital cost – will deliver 1 GW of solar PV capacity and 200 MWh of battery storage. BII is providing a $100 million concessional loan and a $15 million grant to reduce the cost of the BESS component, making the project more viable, attracting private investment, and setting a model for future deals. With an updated portfolio size of over $708 million, Egypt is a critical partner for BII with the latest agreements reflecting an ongoing commitment to the region's climate agenda. The projects align with BII's North Africa climate strategy, which underscores the role of innovative and scalable renewable energy technologies that enhance climate resilience for future generations. In Morocco, BII backs green hydrogen projects, while in Tunisia, the DFI is identifying opportunities to scale climate-smart agriculture. These efforts collectively promote climate innovation, enabling the private sector's ability to produce, export and share clean energy. Sherine Shohdy, Head of Egypt Office and Coverage Director, BII, added: 'Our latest agreements reflect BII's long-term commitment to Egypt's clean energy transition and our confidence in the country's ability to lead on climate innovation in the region. Through our capital partnerships, we are proud to deliver new infrastructure that will provide affordable and reliable, low-carbon power and unlock thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy. تم نسخ الرابط
Al-Ahram Weekly
02-07-2025
- Business
- Al-Ahram Weekly
BII commits over $300 mln to Egypt's renewable energy projects - Energy
British International Investment (BII), the UK's development finance institution and impact investor, announced on Wednesday over $300 million in new commitments to support Egypt's transition to clean energy, as the country seeks to position itself as a regional renewable energy hub. The funds will help develop more than 2 gigawatts of new renewable energy capacity, contributing to Egypt's target of generating 42 percent of its electricity from renewable sources by 2030. The financing supports two large-scale projects: the 1.1 gigawatt Gulf of Suez Wind Farm, set to be Africa's largest onshore wind installation, and a 1 gigawatt solar photovoltaic (PV) and battery energy storage system (BESS) being developed in collaboration with Norwegian energy company Scatec. Gulf of Suez Wind Farm: Africa's largest onshore wind project BII is investing $190 million in the $1.05 billion Gulf of Suez Wind Farm, which will produce over 4,300 gigawatt hours (GWh) of electricity annually and prevent an estimated 2.2 million tonnes of CO₂ emissions per year. The project is also expected to support more than 10,000 jobs, according to BII. The wind farm is part of a $707 million debt package backed by a group of development finance institutions (DFIs), including the European Bank for Reconstruction and Development (EBRD), the African Development Bank (AfDB), DEG – Deutsche Investitions- und Entwicklungsgesellschaft, the OPEC Fund for International Development, and the Arab Petroleum Investments Corporation (APICORP). The project is a core pillar of Egypt's Nexus of Water, Food, and Energy (NWFE) initiative, a government framework that aims to integrate climate-related investments across various sectors. Pioneering solar + storage: Egypt's 1st utility-scale BESS project BII is also co-financing Egypt's first utility-scale solar and battery storage project alongside Scatec, the EBRD, and the AfDB. The $475.6 million project, which accounts for 80 percent of the total capital cost, will deliver 1 GW of solar capacity and 200 megawatt-hours (MWh) of battery storage aimed at enhancing grid reliability. To support the battery component, BII is providing a $100 million concessional loan and a $15 million grant as part of a blended finance approach aimed at reducing costs and attracting private investment. With these deals, BII's total investment portfolio in Egypt now exceeds $708 million. The institution says it views Egypt as a key market in its broader North Africa strategy, which includes green hydrogen projects in Morocco and sustainable agriculture initiatives in Tunisia. 'Our latest agreements reflect BII's long-term commitment to Egypt's clean energy transition and our confidence in the country's ability to lead on climate innovation in the region,' said Sherine Shohdy, BII's Head of Egypt Office and Coverage Director. 'Through our capital partnerships, we are proud to deliver new infrastructure that provides affordable, reliable, low-carbon power and unlocks thousands of green jobs. Our goal is to deliver impact at scale, supporting Egypt's renewable energy ambitions and the resilience of its wider economy', Shohdy added. Both projects support Egypt's Vision 2030 development strategy and highlight growing international interest in the country's energy transition. They also reflect the role that concessional finance is playing in making large-scale renewable projects viable in emerging markets. Follow us on: Facebook Instagram Whatsapp Short link:
