SUSI Partners’ Asia Energy Transition Fund (SAETF) held its first closing on 25 May 2021 with investor commitments of USD 81 million. The closing will expand SUSI’s investment reach to a fast-growing region with significant capital requirements for the development of a clean, reliable, and cost-effective energy system.
SAETF has raised commitments from a number of DFIs including the Asian Infrastructure Investment Bank (AIIB), Dutch development bank FMO, as well as Nordic DFIs Norfund and Swedfund. Private institutional investors from Germany and Singapore added to the first closing.
“With several DFIs in the mix, we have gained access to a group of investors that will play a crucial role in catalysing responsible private capital flows to emerging market economies,” says Marius Dorfmeister, Co-CEO and Global Head of Clients at SUSI Partners. “By bringing together public and private investors, we are combining best practices to accelerate the buildout of sustainable energy infrastructure in a region that will be a crucial factor in achieving global climate targets.”
While CO2 emissions in many developed countries have been stagnating or even decreasing, Southeast Asia has been recording continuously increasing emission levels. This trend is expected to continue, as the region is characterised by strong GDP growth and population dynamics driving energy demand increases for the foreseeable future. Accordingly, directing funds towards a sustainable energy system becomes all the more urgent.
Marco van Daele, Co-CEO and Chief Investment Officer, adds: “Growing energy demand, the urgent energy transition and resulting need for capital in the clean energy infrastructure space make Southeast Asia an attractive market for investors. Our activities, led by our local team in Singapore, widen SUSI’s investment remit and allow for further expansion into the high-growth markets of Asia.”
SAETF targets sustainable energy infrastructure investments across clean power generation, energy efficiency, and solutions enabling clean energy use such as energy storage and microgrids. Asset diversification is targeted not only with regards to technology, counterparties and sectors, but also geographically, with Indonesia, Thailand, Vietnam and the Philippines representing first-priority markets, followed by Malaysia, Cambodia and Laos. All investments will be in accordance with SUSI’s strict internal sustainable investing requirements and compliant with IFC Performance Standards as well as World Bank Group EHS guidelines and support global climate mitigation efforts through measurable and independently certified CO2 emissions savings.