I Squared Capital, a global infrastructure investor, has on Tuesday announced plans to form a strategic partnership with the U.S. International Development Finance Corporation (DFC) to establish a new $3 billion investment platform focused on developing critical energy infrastructure in South and Southeast Asia.
I Squared said in a statement that its managed vehicles will look to commit a total of $1.5 billion from I Squared and an additional $1.5 billion from DFC to establish the platform which will help strengthen energy connectivity between the United States and the Indo-pacific region, including expanded access to U.S. liquefied natural gas (LNG) and related energy exports.
The platform represents DFC’s largest single investment in a project to date and reflects a shared commitment to mobilizing long-term private capital to address the region’s growing energy infrastructure needs.
This platform builds on I Squared’s established relationship with DFC.
Since 2016, DFC has committed $500 million and I Squared managed funds have committed $1.5 billion of capital across other investment vehicles managed by I Squared, mobilizing $2 billion of capital for infrastructure related investments across South and Southeast Asia and Latin America.
“Energy security has become one of the defining infrastructure challenges of our time,
“The opportunity to invest alongside DFC once again underscores the importance of public-private partnerships and how mobilizing private capital at scale for emerging economies can accelerate the development of essential infrastructure, enhancing supply chain resilience, supporting economic growth and creating long-term value for communities,” said Sadek Wahba, Chairman and Managing Partner of I Squared Capital.
DFC’s Head of Investments Conor Coleman said this deal marks a historic step forward in DFC’s strategy to deliver high-impact infrastructure that strengthens America’s partners and advances U.S. and Allied Partners economic interests.
“Through our partnership with I Squared Capital we aim to mobilize private sector expertise and capital to build the energy security infrastructure the Indo-Pacific needs to grow and prosper,
“This is DFC’s mission in action: strengthening allies, opening markets, and building a more secure and resilient Indo-Pacific,” he added.
It is noted that rapid economic growth, urbanization and rising power demand across South and Southeast Asia are driving significant investment needs in energy infrastructure.
Many countries in the region face infrastructure gaps that contribute to energy shortages, price volatility and constraints on industrial growth.
By expanding critical LNG and other petroleum products import, storage and transportation infrastructure, this new platform will seek to address these bottlenecks and support more secure, reliable and affordable energy systems across the Indo-Pacific.
I Squared said it has been investing across Asia since 2014, deploying more than $9 billion of capital across 24 markets, building leading infrastructure platforms in the energy, utilities, transport and digital sectors.
The firm’s longstanding presence and deep experience in the region uniquely positions it to help meet growing demand for critical energy infrastructure and support long-term economic development for emerging markets across the Indo-Pacific.
The transaction remains subject to customary approvals and closing conditions.