OPIC and I Squared Capital Sign Commitment for Infrastructure Investments in Asia
October 26, 2016
OPIC-supported Investment Funds will Help Build Critical Infrastructure Projects Across South & Southeast Asia
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, has signed a commitment to provide $200 million in financing to ISQ Asia Fund, L.P., an infrastructure fund managed by U.S.-based infrastructure investor I Squared Capital. The Asia Development Bank estimates that over $1 trillion must be spent on infrastructure to maintain the region’s continued economic growth. With South and Southeast Asian economies being held back by lack of infrastructure, there is an increased need for private sector investments in the region. With support from OPIC, I Squared Capital hopes to deploy capital throughout emerging Asia to finance projects that will contribute to the current economic growth trajectory.
“Investments in infrastructure are a critical foundation for lasting development,” said Elizabeth L. Littlefield, OPIC President and CEO. “Across Asia, there is a significant demand for infrastructure that is not currently being met. By partnering with I Squared Capital, we hope to focus on infrastructure investments including renewable energy, transportation, water and waste management throughout Asia’s emerging markets. These projects will promote sustainable economic development and demonstrate the potential for investments in these markets.”
“South and Southeast Asian infrastructure requires enormous investment in the coming decade to keep pace with rapid urbanization and economic development,” said Gautam Bhandari, Partner at I Squared Capital. “This financing will have a significant impact in this vital sector and we are excited that OPIC has chosen I Squared Capital.”
I Squared Capital anticipates investments in infrastructure-related sectors across South and Southeast Asia with a special emphasis on financing urban infrastructure. The fund applied to OPIC’s 2015 Global Engagement Call for Proposals, and is OPIC’s largest fund commitment to date. Through a competitive process, funds are selected that target projects in OPIC-eligible countries for new business development, existing company expansion, restructuring, and/or privatization. This project will help advance the Obama Administration’s Rebalance to Asia and the Pacific, to strengthen cooperation among U.S. allies and partners, leveraging their capabilities to address common regional and global challenges.
OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker's rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide. For more information visit www.opic.gov
About I Squared Capital
I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, and transport in the Americas, Europe, and select high growth economies. The Firm has offices in New York, Houston, London, New Delhi, Hong Kong and Singapore.