UK Finance Unit Sets Up $1.5 Billion Asia Energy Strategy

British International Investment, the UK’s development finance institution, has created a £1.1 billion ($1.5 billion) strategy to back energy transition sectors in India and Southeast Asia, with a view to partnering with pension funds and other institutional investors.

The vehicle will provide equity or mezzanine financing — a form of capital that bridges the gap between debt and equity investments — to projects in markets spanning India, the Philippines, Indonesia and other Southeast Asian economies. Its investments are set to include power generation and transmission, storage and electric-vehicle infrastructure, as well as hard-to-abate sectors such as steel and cement.