British International Investment (BII), the UK’s development finance institution, has announced a $30 million commitment to the Industrial Transformation Programme (ITP) to finance corporate decarbonisation and industrial transition projects across South-East Asia.
Managed by BlackRock through its infrastructure credit platform within Global Infrastructure Partners, the ITP provides debt financing to businesses executing low-carbon transformations, specifically targeting hard-to-abate sectors. The programme serves as one of three primary pillars under the Monetary Authority of Singapore’s (MAS) Financing Asia’s Transition Partnership (FAST-P), a blended finance initiative aiming to mobilise up to $5 billion for regional transition opportunities.
BII’s investment is structured as a junior tranche, designed to absorb higher risk in order to crowd in private commercial capital into the senior tranche. This commitment makes BII the largest catalytic investor in the programme alongside sponsor MAS, aligning with the institution’s five-year strategy to dedicate at least 40% of its new investments to climate finance. According to the International Energy Agency (IEA), South-East Asia’s energy-related carbon dioxide emissions could rise by a third by 2050 without intervention, with the regional transition estimated to require $210 billion annually.
Rachel Kyte, the UK’s Special Representative for Climate, noted the broader diplomatic context of the funding, stating: “This move marks a significant step forward in the UK-Singapore Strategic Partnership and reflects both countries’ commitment to support Asia’s green energy transition and sustainable development, a commitment to decarbonise where it’s hardest. This investment is a clear example of the UK’s modern development model, utilising public catalytic capital to back platforms that can crowd in multiples of private finance.”
Srini Nagarajan, Managing Director and Head of Asia at British International Investment, emphasised the necessity of early-stage risk management, adding: “South‑East Asia is central to the global transition, but closing the investment gap will require more capital to move earlier and take more risk. Therefore, we are proud to partner with MAS and support a FAST-P programme that addresses this challenge. Through ITP, we are using our risk-bearing and anchor capital to crowd in commercial investors and accelerate the industrial transformation needed to decarbonise high emitting sectors, while supporting long-term, sustainable growth.”
Munib Madni, CEO of the FAST-P Office, acknowledged the strategic role of development finance institutions in emerging markets, stating: “BII’s commitment to ITP reflects the importance of catalytic, like-minded partners in helping to mobilise private capital towards decarbonisation opportunities in emerging Asia. As a trusted partner across two of FAST-P funds, BII plays an important role in helping us build momentum for blended finance solutions that can support a more resilient and inclusive transition in the region.”
