Project detail - Southeast Asia Clean Energy Fund II, LP

Who is our customer

Southeast Asia Clean Energy Fund II (“SEACEF II” or “the Fund”), is a target US$ 135m fund managed by Clime Capital (“CC”, “FM”), providing catalytic capital to developers and early-stage companies focused on renewable energy (“RE”), energy efficiency (“EE”),e-mobility, and electrical grid solutions in Southeast Asia. The Fund targeted to reach first close in Q4 - 2023. In addition to FMO's participation (upto EUR 12.5m), it is expected that commercial investors and other development finance institutions will also invest at the first close of the Fund.

What is our funding objective?

The Fund will target investments which deliver social and environmental benefits as well as financial returns, with a focus on decarbonization. The Fund intends to deploy capital to early-stage investments in both developers and early-stage corporates/platforms targeting proven, scalable, high-impact technologies and innovative business models to accelerate low carbon transition in the region - across utility/captive RE projects and distributed platforms like EE, E-mobility and grid infrastructure. Vietnam, Philippines and Indonesia will be the core focus countries.

Why do we fund this investment?

South East Asia's low uptake of RE (on average ~15% of generation mix) coupled with rising population and energy demand presents a significant opportunity to deploy capital in fast growing scalable businesses that are critical to reduce carbon emissions growth in the region. The Fund will address important aspects of the region's power landscape, whereby private sector capital deployment is still limited. SEACEF II’s focus differentiates from RE-only funds, and hedges some of the risk associated with grid connected RE in high-potential but challenging core markets.

What is the Environmental and Social categorization rationale?

The committed and prospective investments in the South East Asia Clean Energy Fund include commercial and industrial (C&I) rooftop solar, energy efficiency, e-mobility, and utility scale solar and wind power projects. The environmental & social (E&S) risk categories for these activities may range from category B, to B+, and A. Furthermore, the focus geographies (Vietnam, Indonesia, Philippines) can bring contextual challenges. This investment opportunity is therefore classified as an E&S risk category A private equity fund investment. The IFC Performance Standards that will typically be triggered by all of these activities are PS1 Assessment and Management of E&S Risks and Impacts, PS2 Labor and Working Conditions, PS3 Resource Efficiency and Pollution Prevention and PS4 Community Health, Safety, and Security. In addition, utility scale projects may potentially trigger Performance Standards PS5 Land Acquisition and Involuntary Resettlement, PS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources, PS7 Indigenous Peoples and/or PS8 Cultural Heritage. As SEACEF II will focus on the development stage of the investment cycle, and as the fund manager has experienced managers who have a track record in applying international standards and will have a dedicated E&S expert in the team, they are in a good position to ensure that the environmental and social impact assessments and related studies, and the final project design resulting from it, are of adequate E&S quality and E&S risks and impacts are adequately mitigated and managed.

More investments

Date	Total FMO financing
12/22/2023	USD 3.50 MLN