US development bank DFC approves projects worth $230m across Asia in June quarter

US development bank DFC approves projects worth $230m across Asia in June quarter

US Dollar notes photo by Pixabay

The US development bank International Development Finance Corporation (DFC) has approved 42 new projects totalling more than $5.1 billion in the quarter ended June 30, including projects worth at least $230 million across Asia.

The deals, which may be subject to additional approvals including Congressional notification, involved debt financing and equity investments, according to a press statement.

DFC said its board of directors approved at the sub-board level a $20 million loan to Lhoopa Singapore Pte. Ltd., a Philippines-based proptech startup, to finance affordable housing in the Philippines. In May this year, Lhoopa had closed a Series B funding round led by early-stage venture capital firm Wavemaker Partners. The firm also secured a $20 million revolving credit facility from the Asian Development Bank (ADB).

The development bank also approved a $120 million loan to Trade and Development Bank JSC to bridge funding gaps in Mongolia. At least 30% will be dedicated to renewable energy installations, energy efficiency improvements, and sustainable agriculture programmes.

A $10 million loan to GIF Growth was also approved to help early-stage businesses in Sub-Saharan Africa, South Asia, and Southeast Asia.

Funding projects in India

The DFC also announced that it is set to channel a $10 million equity investment in the climate-focused Avaana Sustainability Fund to support early-stage technology companies in India.

Avaana Capital invests in thematic areas such as energy and resource management, mobility and supply chains, and sustainable agriculture and food systems. The firm has backed companies like FarMart, Ninety One Cycles, Kazam, Eeki Foods, Aerem, Sentra, Eggoz, TurnO, and Terra.do.

The DFC also proposed an up to $15 million loan portfolio guarantee to Pakistan Microfinance Investment Company to expand microloans to women in the country, and a $50 million loan to Vastu Housing Finance Corporation Limited to address housing shortages in India.

DFC has also approved a $5 million loan portfolio guarantee to Laxmi Sunrise Bank in a bid to further Nepal’s energy independence goals.

The approved projects, DFC said, span its priority sectors that include infrastructure and critical minerals, energy, food security and agriculture, health, and small business support while mobilising private capital to address some of the world’s most pressing challenges.

Edited by: Pramod Mathew

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