Southeast Asia will add a new financing line of up to USD 50 million intended to bring an initial portfolio of more than 2 GW of renewable projects to the construction phase.
The agreement was signed between the Emerging Africa & Asia Infrastructure Fund (EAAIF), managed by Ninety One and belonging to the Private Infrastructure Development Group (PIDG), and Ukko Renewable , Groupe Duval 's energy platform in the region.
The financing will be structured as senior secured debt and will allow the advancement of wind, solar, hydroelectric and pumped storage projects in Vietnam, the Philippines and other Southeast Asian countries.
Ukko Renewable has a total portfolio exceeding 3 GW , of which more than 2 GW make up the initial group that will seek to move towards construction with the support of this operation.
Vietnam accounts for a significant portion of the pipeline. The company secured an initial portfolio of 1.4 GW there, with projects prioritized within the country's revised Energy Development Plan, known as PDP8.
That base expands to approximately 2.1 GW within the Vietnamese market, while in the Philippines the company develops various wind and hydroelectric assets.
The funding will not be exclusively for the physical construction of the plants. Its primary function will be to cover development stages necessary for the projects to reach a bankable stage and subsequently attract long-term commercial and institutional capital.
These activities include site identification and preparation, permits, grid connection studies, environmental assessments, and initial engineering.
Once the initial portfolio is built and operational, it is estimated that it will be able to avoid around 2.2 million tons of CO₂ equivalent per year and benefit more than 2.8 million end users .
The challenge comes before the works begin.
“This transaction supports the development of new projects and creates a pathway to attract commercial and institutional investment, accelerating the transition to clean energy in Vietnam and the Philippines,” said Martijn Proos, Co-Head of Alternative Credit for Emerging Markets at Ninety One.
Groupe Duval has already provided initial capital for the expansion of Ukko Renewable and will continue to support the platform in terms of corporate governance and infrastructure development.
Louis-Victor Duval, CEO of the group, highlighted that the goal is to accelerate an initial portfolio of more than 2 GW within a broader pipeline of more than 3 GW.
In the Philippines, the company is also looking to take advantage of the green energy auction program, while in Vietnam its projects will have to move forward within the new national energy planning.
The USD 50 million thus functions as development financing: a relatively small amount compared to the final CAPEX of more than 2 GW of renewables, but intended to overcome the stage that determines whether those projects manage to move from paper to construction.