Swiss infrastructure fund manager SUSI Partners has tied up with Malaysian renewable and clean energy firm Invest Energy to finance and operate energy-saving infrastructure projects across Southeast Asia.
The joint venture, which was made through SUSI Asia Energy Transition Fund (SAETF), marks the firm’s first investment in an emerging market economy, SUSI said in a statement.
The partnership paves the way for up to $130 million investments into projects in the region, reported Malaysia’s national news agency Bernama. A planned investment of up to $30 million is aimed to be announced within the second half of this year.
Primary target investments for the joint venture are bespoke waste heat recovery as well as cogeneration and trigeneration systems for commercial and industrial offtakers. Further opportunities, such as commercial and industrial-scale onsite solar generation, are also being considered.
SUSI said Southeast Asia’s fast-growing energy demand has become a significant obstacle to meet regional climate targets. Energy efficiency projects offsets the increasing demand, on top of enhancing energy security through reduced reliance on energy imports and economic competitiveness by lowering costs for energy consumers.
SAETF reached its $81 million first close in May. It attracted commitments from development finance institutions including Asian Infrastructure Investment Bank, FMO, Norfund, and Swedfund, as well as institutional investors from Germany and Singapore.
In a recent interview with DealStreetAsia, the firm said it expects to make SAETF’s second closing by the fourth quarter of this year, while the final closing will occur in 2022. The total size of the fund is targeted at $250 million.
SAETF will prioritise Indonesia, Thailand, Vietnam and the Philippines as its focus markets, followed by Malaysia, Cambodia and Laos. The fund activities are led by SUSI Partners’ local team in Singapore.
All investments by SAETF will be in alignment with SUSI’s internal sustainable investing requirements, as well as International Finance Corporation’s performance standards and World Bank Group’s environmental, health and safety guidelines.
SUSI Partners manages 1.6 billion euros in investor commitments across seven institutional funds focused on the energy transition spectrum, including clean energy generation, energy efficiency measures, and energy storage and integrated solutions.
The firm has made more than 100 investments across 20 different countries to date.