British International Investment (BII), the United Kingdom’s development finance institution and impact investor, and FMO, the Dutch entrepreneurial development bank, have on Monday announced a joint loan commitment of $50 million to BECIS, a leading energy-as-a-service (EaaS) provider in South-East Asia.

BII said in a statement that BECIS offers a wide array of services, such as rooftop solar, bio energy and energy efficiency solutions, tailored to meet the diverse needs of businesses and communities across Asia.

With a strong commitment to sustainability, BECIS leverages advanced technologies and strategic partnerships to optimize energy consumption, drive the adoption of renewable energy sources, enhance operational efficiency, build resilient energy infrastructure, and promote energy literacy within communities.

According to the statement, the joint financing facility will be used to fuel BECIS’ expansion and back their groundbreaking energy solutions across Vietnam, the Philippines, Indonesia, Thailand, Malaysia and India.

This is in response to the growing demand for clean and affordable energy within these economies.

As BECIS brings its portfolio to 346MW by 2025, it aims to avoid 319,000 tons of carbon dioxide (CO2) emissions per year by offering cleaner and lower-cost electricity to its customers to displace on-grid power.

According to the statement, the loan commitment from BII and FMO underscores their confidence in BECIS’ vision and capabilities to revolutionize the energy sector across the region.

It said this partnership goes beyond just finances and is a symbol of their united mission to propel sustainable development and cultivate innovation across South-East Asia.

“This loan commitment from BII and FMO represents trust and confidence from esteemed partners in our existing capabilities and growth plans,” said Eren Ergin, Chief Executive Officer of BECIS.

“The funding will enable us to further expand our operations and accelerate the adoption of sustainable energy solutions in the region,

“We will be well positioned to help our customers achieve their net zero targets and drive sustainable growth,” he added.

Srini Nagarajan, Managing Director and Head of Asia at BII, said that thier investment in BECIS is BII’s first direct debt financing in South-East Asia.

“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,” he added.

Jeesun Han, Manager Energy at FMO, said they are pleased to continue supporting BECIS’s efforts in expanding its clean energy generation and efficiency solutions in South and South-East Asia.

“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,

“Through this transaction, FMO is also delighted to facilitate BII’s first direct financing into South-East Asia as a trusted partner in climate action,” she added.

According to the statement, BII and FMO remain committed to fostering partnerships that drive sustainable development, innovation, and economic prosperity across Asia.

It said this new financing in BECIS embodies their shared vision for a thriving, sustainable future for the region.

BII invests to support the United Kingdom government’s clean green initiative and to create productive, sustainable and inclusive economies in its markets.

Between 2022-2026, at least 30 percent of BII’s total new commitments by value will be in climate finance.

The institution intends to deploy up to £500 million ($623.31 million) in climate finance projects in South-East Asia to support decarbonization in the region.

BII is also a founding member of the 2X Challenge which has raised over $16 billion to empower women’s economic development. The company has investments in over 1,470 businesses across 65 countries and total assets of £8.1 billion ($10.10 billion).

As an impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.

The bank focuses on three sectors that have high development impact: agribusiness, food and water, energy, and financial institutions.

With a total committed portfolio of EUR 13 billion ($13.85 billion) spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.

ASEAN Reinsurance Working Committee inks MOU to establish ASEAN renewable energy pool