The US development bank International Development Finance Corporation (DFC) has approved at least $326 million worth of investments in firms based in, or focused on, Asia, including India, in its fiscal year 2024.
The deals, which involved debt financing and equity investments, were part of the more than $12 billion in commitments that DFC made for FY 2024 to advance developmental impact and strategic priorities around the world.
On the heels of a strong fourth quarter, the 181 new transactions in FY24 advance developmental impact and national security priorities around the world in alignment with DFC’s five priority sectors: health, infrastructure, energy, agribusiness, and small business support.
“Fiscal Year 2024 has been a productive and record-setting year for the DFC team, and the huge accomplishments of the fourth quarter demonstrate the enormous progress DFC has made in meeting our mandate under the BUILD Act,” said DFC CEO Scott Nathan.
In Asia, DFC’s commitment included a $50-million equity investment in the Emerging Markets Infrastructure Fund II, the second fund of AP Moller Capital that seeks to invest in transport and renewable energy sectors in Africa, South Asia, and Southeast Asia.
The fund targets $1 billion in capital commitments.
DFC, in partnership with the US Agency for International Development (USAID), also approved a $75-million loan portfolio guarantee to Bank of the Philippines Islands, one of the top banks in the Philippines.
The commitment, DFC said, will enable $150 million in new loans to be issued to small businesses across the Philippines, with at least a quarter of them operating in the agricultural sector.
Additionally, the US development bank committed $50 million to Copenhagen Infrastructure Growth Markets Fund II, which is investing in renewable energy infrastructure projects in high-growth markets, including South and Southeast Asia.
At its sub-board level, DFC also approved a $20-million loan to January Capital Growth Credit Fund I to help expand lending to growth-stage technology companies in Southeast Asia.
In India, DFC’s commitments included $20 million in Satya MicroCapital, $10 million in Nepra Resource Management, and $10 million in mooMark, among others.
DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology.
The US lender also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC earlier said developing countries face an infrastructure gap that is estimated to exceed $40 trillion by 2045.
