US invests in Asia infra fund

The US government’s development finance institution has signed a commitment to provide $200m to an infrastructure fund focused on South and Southeast Asia.

The Overseas Private Investment Corporation (OPIC) is to invest in ISQ Asia Fund LP, managed by US-based infrastructure investor I Squared Capital.

Elizabeth Littlefield, OPIC president and chief executive officer, said: “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.”

OPIC believes there is an increased need for private sector investments in South and Southeast Asia. I Squared Capital anticipates investments in infrastructure-related sectors across that region 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.

In December 2015 OPIC approved up to $200m in financing to ISQ Asia Aggregator, a private equity fund managed by I Squared Capital which was to make infrastructure investments across South and Southeast Asia.

Meanwhile, OPIC has backed health PPP projects in Turkey to be delivered by consortia led by conglomerate General Electric.