- BII commits $30 million in junior tranche to mobilise commercial capital.
- Investment supports decarbonisation projects and transition opportunities in South-East Asia, focusing on energy and industrial sectors.
- Second BII commitment to FAST-P, following investment in Green Investment Partnership.
British International Investment (BII), the UK’s development finance institution and impact investor, today announced a $30 million commitment to the Industrial Transformation Programme (ITP) to support decarbonisation projects and transition opportunities in South‑East Asia. ITP is managed by BlackRock through its infrastructure credit platform within Global Infrastructure Partners.
South-East Asia is a major driver of global energy trends, with projected rise in energy demand over the coming decades second only to India. The IEA estimates that without significant intervention, energy-related CO2 emissions in the region could rise by around a third by 2050, underscoring the scale of the transition challenge. Meeting this shift to a lower‑carbon economy is estimated to require around $210 billion a year in investment.
ITP is an infrastructure debt programme that provides financing to corporates to decarbonise their operations, including hard‑to‑abate sectors, technology solutions for low‑carbon transformation, and wider industrial transition opportunities. ITP is one of the three pillars under the Monetary Authority of Singapore’s (MAS) Financing Asia’s Transition Partnership (FAST‑P), a blended finance initiative that aims to mobilise up to $5 billion from public, private and philanthropic partners for transition opportunities across South-East Asia.
BII’s $30 million commitment, structured as a junior tranche, is designed to crowd in commercial capital into the senior tranche by taking on higher risk. It makes the UK’s DFI the largest catalytic investor behind the programme sponsor, MAS. The investment aligns with BII’s new five‑year strategy to mobilise more private capital at scale and commit at least 40 per cent of new investments to climate finance.
Rachel Kyte, the UK’s Special Representative for Climate, said: “This move marks a significant step forward in the UK-Singapore Strategic Partnership and reflects both countries’ commitment to support Asia’s green energy transition and sustainable development, a commitment to decarbonise where it’s hardest. This investment is a clear example of the UK’s modern development model, utilising public catalytic capital to back platforms that can crowd in multiples of private finance.”
Srini Nagarajan, Managing Director and Head of Asia at British International Investment, said: “South‑East Asia is central to the global transition, but closing the investment gap will require more capital to move earlier and take more risk. Therefore, we are proud to partner with MAS and support a FAST-P programme that addresses this challenge. Through ITP, we are using our risk-bearing and anchor capital to crowd in commercial investors and accelerate the industrial transformation needed to decarbonise high emitting sectors, while supporting long-term, sustainable growth.
Munib Madni, CEO of FAST-P Office, said: “FAST-P is grateful for BII’s continued partnership and support in advancing the region’s transition. BII’s commitment to ITP reflects the importance of catalytic, like-minded partners in helping to mobilise private capital towards decarbonisation opportunities in emerging Asia. As a trusted partner across two of FAST-P funds, BII plays an important role in helping us build momentum for blended finance solutions that can support a more resilient and inclusive transition in the region.”
BII has also anchored the Pentagreen Green Investment Partnership, another FAST‑P pillar, to support green and sustainable infrastructure in South‑East Asia. BII’s participation in FAST‑P demonstrates its commitment to mobilising climate finance and accelerating the region’s low‑carbon transition.
Media contact:
Paschorina Mortty/ Nia Tam: [email protected]
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About British International Investment
British International Investment is the UK’s development finance institution and impact investor. The organisation invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.
Between 2026-2031, at least 40 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,600 businesses across 66 countries and total net assets of £9.87 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn, Bluesky and X.
