The US development bank International Development Finance Corporation (DFC) will invest $1.5 billion to establish an investment platform focused on energy infrastructure across the Indo-Pacific, including South and Southeast Asia.
The platform, which DFC will establish in partnership with US infrastructure investor I Squared Capital, forms part of $2.5 billion in new strategic investments approved by the agency’s board on June 3.
DFC described the transaction as the single largest project investment in its history.
“These deals exemplify the shift in DFC’s strategy. The investments approved in today’s successful board meeting will develop critical infrastructure in Southeast Asia,” said DFC CEO Ben Black.
In a statement, DFC said the investment platform will seek to facilitate the buildout of energy security infrastructure across the Indo-Pacific, with a focus on liquefied natural gas (LNG) and other energy-related assets.
According to DFC, the initiative aims to address shortages of critical energy infrastructure that limit energy security, contribute to price volatility and constrain industrial growth in regional markets.
The move comes as Southeast Asian countries seek to expand energy capacity to support industrialisation, data centres, manufacturing investments and economic growth, while balancing energy security concerns and decarbonization goals.
Black said the agency was using private capital to support infrastructure development, increase US access to critical minerals and build the Trump Route for International Peace and Prosperity (TRIPP) Development Company.
In Southeast Asia, DFC approved strategic capital deployment to support the refinancing of the new Techo International Airport in Phnom Penh, Cambodia.
The agency said the investment would support the expansion of Cambodia’s aviation infrastructure and create broader opportunities for trade, economic growth and development.
“The deal underscores DFC’s role as a partner capable of unleashing capital, expertise, and innovation to strengthen one of Cambodia’s most critical infrastructure assets,” DFC said.
The transactions remain subject to additional steps before commitment and closing, including congressional notification requirements.
DFC partners with the private sector to finance solutions to 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.
