US I Squared and DFC Establish $3 Billion Energy Infrastructure Platform

en.Wedoany.com Reported - US infrastructure investment firm I Squared Capital and the US International Development Finance Corporation (DFC) plan to jointly establish a new $3 billion investment platform focused on developing energy infrastructure in South and Southeast Asia.

According to a joint statement, investment vehicles managed by I Squared will commit a total of $1.5 billion, with DFC adding another $1.5 billion to establish the platform. The platform "will help strengthen energy connectivity between the US and the Indo-Pacific region, including expanding access to US liquefied natural gas and related energy exports." DFC, as the US government's international investment agency, stated that this transaction represents the largest project investment in its history.

The statement noted that economic growth, accelerating urbanization, and rising electricity demand in South and Southeast Asia are driving significant investment needs in energy infrastructure. Many countries face infrastructure gaps, leading to energy shortages, price volatility, and constrained industrial growth.

"By expanding critical LNG and other petroleum product import, storage, and transportation infrastructure, this new platform will seek to address these bottlenecks and support a more secure, reliable, and affordable energy system in the Indo-Pacific region," the statement said. I Squared and DFC did not provide further details on LNG infrastructure. The transaction is subject to customary approvals and satisfaction of closing conditions.

The platform builds on the existing relationship between I Squared and DFC. Since 2016, DFC has committed $500 million, and funds managed by I Squared have committed $1.5 billion to other investment vehicles under its management, thereby raising $2 billion in capital for infrastructure-related investments in South and Southeast Asia and Latin America.

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