On 28th June 2021, GreenDKinSEA members and distinguished speakers from International Finance Corporation (IFC) and Development Finance International (DFI) came together for an exclusive briefing hosted by the Royal Danish Embassy in Singapore. It was an enlightening webinar on how to obtain funding for sustainable infrastructure project development in Southeast Asia. Below, we summarize main take-home messages and presentation material from the event.
Agenda & Line up of Speakers:
Opening remarks - by Mr. Mark Perry, Sector Expert, Royal Danish Embassy in Singapore.
International Finance Corporation's (IFC) strategy for green infrastructure development and related funding vehicles - by Mr. Lubomir Varbanov, New Business Manager, East Asia Pacific, International Finance Corporation.
Mobilizing development funds to accelerate operational & supply chain sustainability - by Mr. Dave de la Cuesta, Head, Asia Operations, Development Finance International.
International Finance Corporation's (IFC) strategy for green infrastructure development and related funding vehicles
Download IFC's presentation
IFC's areas of investment
IFC is one of the members of The World Bank Group. The entity is a global leader in private sector development, working with experts to provide comprehensive solutions to clients in developing countries to address today’s greatest development challenges. IFC has a local presence in 94 countries around the world, with more than US$285bn invested since 1956. It provides a unique perspective, the opportunity for value-added to clients while finding suitable local partners and linking those with their clients.
Overview over projects and project trends in Southeast Asia
Supporting inclusive growth is one of IFC’s priorities in South East Asia, where approximately US$3bn is in the committed portfolio. IFC invests in projects across multiple sectors from agribusiness to infrastructure. With the majority of investments going to Energy, Transport, and Utilities (Water & Waste).
Snapshot of IFC’s Energy business
Renewable energy remains a significant part of IFC’s climate investments. IFC has invested $8 billion into energy as of June 2020 and is increasingly working upstream to open markets for new technologies and working with companies and regulators to scale energy storage markets in emerging economies as well as enabling more renewable energy to enter the grid.
Global Footprint in Water, Waste, and Municipal Sectors
Water and Waste is another space that IFC is prioritizing. IFC helps its waste partners take advantage of scaling circular solutions such as recycling, refuse-derived fuel, anaerobic, digestion, and waste-to-energy plants. IFC plays the role of enabling partnerships between governments and private operators to bring the needed capital, expertise, and technology to improve water access and services. Working alongside government, civil society, and other stakeholders, the private sector can provide complementary knowledge, experience, and insight to address critical issues of water resource management.
Project Development Facility
IFC's support across the innovation ecosystem takes on a holistic investment approach in the entire entrepreneurial and venture capitalist (VC) ecosystem. Its portfolio reached over US$1.4bn in aggregate size with over 60 direct and co-investments and over 50 investments in VC funds, seed funds, and accelerators.
IFC InfraVentures is a US$150 million global infrastructure project development fund is a unique early-stage infrastructure project development facility designed to address the key constraints of private investment in infrastructure projects in frontier markets. It can fund up to US$8 million of a project’s expenses at an early stage of development, or 20-30% of the capital at risk required. Additionally, IFC InfraVentures’ experienced staff are actively involved, thereby adding the necessary expertise to the development team.
Investment process
It is important to point out that no two projects are the same. As such, although the different stages of investment remain similar from project to project, project timelines vary from weeks to years:
Strategy
Conduct on-site due diligence
Credit committee approval
Proceed with disclosure
Approval
For more information on IFC’s past and current investments, and overview of project developers, please refer to:
Contact information
Lubomir Varbanov (Mr)
New Business Manager, East Asia Pacific
International Finance Corporation
Email: lvarbanov@ifc.org
Mobilizing development funds to accelerate operational & supply chain sustainability
Download the presentation
Development Finance International - an expert in securing development funding from IFIs
DFI is an international business development advisory company providing a strategy-through-execution approach. It brings a distinct perspective to emerging market challenges and solutions by assisting companies secure funding from International Financial Institutions (IFIs). With $200bn annual IFI funding across sectors and thousands of projects and partnerships, the opportunities are immense.
Leveraging IFI financing to unlock business growth involves three areas:
Top-line growth: procurement, new markets, firm budget, transparent, process
Co-funding: Capital expenditure/Operating expenditure offset, costs savings, risk management, sustainability and quality, sourcing, equity
Thought leadership: Seat at the table, visibility, branding, events, best practices, case studies
Overview of various funding mechanisms
Funding mechanisms for projects to accelerate operational & supply chain sustainability vary across the value chain as illustrated below:
How can the private sector take advantage of the opportunities?
Some of the most successful factors when pursuing and leveraging IFI funding are:
Alignment with IFI and government priorities at project level and in the "language" used to communicate project goals.
Proactive, early, and continuous engagement with IFIs and key stakeholders.
Dedicated resources (co-funding)
Contact information
Dave de la Cuesta (Mr)
Head Asia Operations
Development Finance International Inc.
Email: ddelacuesta@dfintl.com
Contact the Royal Danish Embassy in Singapore for more information about business opportunities and how Denmark seeks to inspire green transition in Southeast Asia:
Mark Edward Perry
Sector Expert at Royal Danish Embassy Singapore
Phone: +65 9088 5567
Email: markpe@um.dk
Join Green Denmark in Southeast Asia