British International Investment (BII), the UK government’s development finance institution, committed £626 million (approximately $853 million) to businesses across Asia in 2024, significantly up from £245 million the previous year.
Despite a challenging macroeconomic environment, BII more than doubled its investments in the region, underscoring its confidence in Asia’s long-term growth potential, the institution said in a statement.
BII’s commitments in Asia accounted for 36% of its total £1.75 billion global investments in 2024, the firm’s annual review showed. Africa remained the primary focus, receiving £1.09 billion, or 62% of the total. The remaining £29 million was allocated to other regions.
“Our 2024 investment figures demonstrate our steadfast commitment to our Asian markets as we focus on delivering inclusive economic growth and meeting the challenge of the climate emergency,” said Srini Nagarajan, managing director and head of Asia at BII.
In total, BII invested £708 million in climate finance in 2024, comprising 41% of its overall commitments for the year. This compares with just £80 million in 2020.
The company’s climate finance assets now make up over 26% of its entire portfolio, up from just over 15% in 2020. Over the last three years, BII has invested over $2 billion in climate finance, the annual review further showed.
“BII will continue to play a pivotal role in mobilising private capital, particularly for climate finance across South and Southeast Asia,” Nagarajan added.
BII also made £499 million of gender finance commitments in 2024 and £880 million of commitments to the poorer and most fragile countries across the regions where it invests.
Some of BII’s key investments in Asia in 2024 include £19.8 million in BECIS SEA Pte Ltd (Thailand), £14.2 million in Skye Renewables Energy (Philippines), £43.2 million in Sustainable Asia Renewable Assets (Singapore), £11.6 million in Valency International (Singapore), £4 million in Xurya Pte Ltd (Indonesia), and £11.2 million in the SUSI Asia Energy Transition Fund (Southeast Asia), among others.
In India, BII committed £75.1 million to Enerica Regrid Infra Pvt Ltd, £14.3 million to Tecso Charge Zone Limited, £23.6 million to the Vivriti Fixed Income Fund – Series 3 IFSC LL, £12 million to South Asia Growth Fund III Holdings, and £7.9 million to Asha Venture GIFT Trust, among others.
The institution reported a post-tax profit of £213.3 million in 2024, a sharp reversal from a £44 million loss the previous year. The gain represents a 2.5% return on net assets, compared with a 0.5% loss in 2023.
BII’s total net assets increased to £9.9 billion from £8.5 billion, even as the overall portfolio declined by £28.4 million to £7.3 billion. The decline reflected similar levels of new investments and realisations during the year.
The portfolio generated a return of £317.3 million, up from £71.5 million in 2023, translating to a portfolio gain of 4.3%, compared with 1.1% the previous year.
BII is the UK’s development finance institution and impact investor, supporting businesses in developing countries to improve lives and protect the planet.
Its investments address the root causes of poverty and the climate crisis, aiming to help countries move beyond aid dependency. Between 2022 and 2026, at least 30% of BII’s new commitments by value will be directed towards climate finance.
BII is also a founding member of the 2X Challenge, which has mobilised over $33.6 billion to advance women’s economic empowerment. The institution has investments in more than 1,600 businesses across 70 countries, with total net assets of £9.87 billion.
India remains a crucial destination for BII and represents about 20-21% of its balance sheet, with $2.6 billion committed and invested in the country
In May, it made its first investment in India’s solar manufacturing sector by committing $100 million to ReNew Photovoltaics, a subsidiary of ReNew Energy Global Plc.
