U.S.-based Infrastructure investor I Squared Capital and the U.S. International Development Finance Corporation (DFC) plan to establish a new $3 billion investment platform focused on developing energy infrastructure in South and Southeast Asia.
I Squared-managed vehicles will look to commit a total of $1.5 billion from I Squared and an additional $1.5 billion from DFC to establish the platform which will “help strengthen energy connectivity between the United States and the Indo-pacific region, including expanded access to U.S. LNG and related energy exports,” according to a joint statement.
DFC, which is the international investment arm of the U.S. government, said that this deal represents the single largest project investment in its history.
Rapid economic growth, urbanization, and rising power demand across South and Southeast Asia are driving significant investment needs in energy infrastructure, the statement said.
Many countries in the region face infrastructure gaps that contribute to energy shortages, price volatility, and constraints on industrial growth.
“By expanding critical LNG and other petroleum products import, storage, and transportation infrastructure, this new platform will seek to address these bottlenecks and support more secure, reliable, and affordable energy systems across the Indo-Pacific,” the statement said.
I Squared and DFC did not provide further details regarding LNG infrastructure.
The transaction remains subject to customary approvals and closing conditions.
This platform builds on I Squared’s established relationship with DFC.
Since 2016, DFC has committed $500 million and I Squared-managed funds have committed $1.5 billion of capital across other investment vehicles managed by I Squared, mobilizing $2 billion of capital for infrastructure-related investments across South and Southeast Asia and Latin America.