US development bank International Development Finance Corporation (DFC) has approved more than $126 million worth of investments in companies based in, or focused on, Asia, including India.
The deals were part of the $3.3 billion that DFC approved at the board and sub-board levels during its fiscal first quarter of financial year 2024 (Q1 FY2024), which runs from October to December 2023.
The investments were into 16 new projects in key sectors, including health, food security, critical infrastructure, energy, support for small businesses, and more, according to a DFC announcement.
In Asia, the DFC’s approved investments at the corporation level included a $126-million loan to Indonesia’s PT Medco Cahaya Geothermal and a separate equity commitment to Eversource Climate Investment Partners II.
Medco Cahaya Geothermal is developing 31.4 megawatt (MW) of geothermal power generation capacity in East Java. The project will expand Indonesia’s renewable energy production, according to DFC.
Eversource Climate Investment Partners II will invest in and drive climate change adaptation and energy transition projects across India and the Indo-Pacific, according to the announcement.
The fund’s focus includes renewable energy, electric transportation, circular economy, and sustainable water, food, and agriculture projects in emerging markets across India and the Indo-Pacific.
Some of Eversource’s investments include Kathari Water Management, a platform it founded to operate assets in water and wastewater-related subsets in India, and Accretive Cleantech Finance, a climate Finance NBFC that offers financial solutions for green asset classes such as electric vehicles (two- and three-wheelers), rooftop solar and SMEs (packaging, water, waste, building material) and energy-efficient SMEs.
Globally, the bulk of DFC’s investments in Oct-Dec 2023 went to Gavi, the Vaccine Alliance, which received a $1-billion loan facility to focus not only on COVID-19 vaccines but other routine childhood vaccines and potential future outbreak vaccines.
DFC and Citi will also co-finance a $320-million loan to CRDB Bank to increase the bank’s capacity for on-lending to small businesses in Tanzania and Burundi, especially enterprises led and owned by women.
DFC partners with the private sector to create finance solutions for the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology.
The US lender also provides financing for small businesses and women entrepreneurs to create jobs in emerging markets.
DFC said developing countries face an infrastructure gap estimated to exceed $40 trillion by 2045. Approximately 771 million people worldwide lack access to safe water, 1.7 billion people lack access to improved sanitation, and more than half of the people across Africa lack access to needed healthcare.
In the July to September quarter, DFC had approved at least $570 million worth of investments in companies based in, or focused on, Southeast Asia.
