Dedicated facility believed to be the first of its type offered by a development finance institution
British International Investment, the UK’s development finance institution and impact investor, is to launch a new facility to boost the flow of private capital to meet the twin challenges of development and the climate emergency.
The new facility aims to unlock hundreds of millions of pounds of private investment into climate and sustainability-focused investments in emerging economies that are currently deemed to be too risky by global investors.
It will address the gap between the risk appetite and return thresholds of commercial investors who are currently inclined to place capital in more developed markets.
Nick O’Donohoe, Chief Executive of BII, said: “With the launch of this facility, BII and the UK Government are demonstrating global leadership in unlocking the private capital that is so desperately needed to accelerate the green transition in emerging economies.
“The role for BII, and the development finance community, is to judiciously deploy concessionary finance to give global investors the confidence to put their capital where it is most needed.”
These investments are expected to include utility-scale climate infrastructure, such as renewable energy generation and transmission; other climate infrastructure, such as water, waste-to-energy, and battery storage; green finance, through banks and specialist finance companies that lend to climate-focused businesses; and investments that deepen capital markets for gender finance.
The facility will target deep and long-term pools of capital, such as pension savings and life insurance policies; as well as focus on asset managers in the City of London and beyond, to design investment products that increase investment allocations to emerging markets.
BII will use the facility to support a mix of existing pipeline and newly identified projects.
For media inquiries please contact:
British International Investment: | press@bii.co.uk
About British International Investment
British International Investment is the UK’s development finance institution and impact investor. As a trusted investment partner to businesses in Africa, Asia, and the Caribbean, BII invests to create productive, sustainable, and inclusive economies in our markets. Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,580 businesses across 65 countries and total net assets of £8.5 billion. For more information, visit: www.bii.co.uk | watch here. Follow British International Investment on LinkedIn and X.
