BlackRock is seeking to raise a $750 million blended finance debt fund focused on industrial decarbonisation and low-carbon infrastructure projects across Southeast Asia and South Asia, with the International Finance Corporation (IFC) proposing up to $50 million in anchor capital for the vehicle, according to project documents.
The proposed fund, called the Emerging Asia Infrastructure Credit Fund (EAICF), will provide senior, mezzanine and subordinated debt financing to private-sector borrowers in sectors including industrial decarbonisation and climate technologies, the documents showed.
The fund will primarily target Southeast Asian markets such as Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Laos and Cambodia, with up to 20% allocated to South Asia.
The proposed IFC commitment includes up to $40 million in a senior tranche, up to $5 million in a junior tranche for IFC’s own account, and another $5 million junior tranche backed by the Frontier Opportunities Fund under a blended finance structure, according to the disclosure.
The vehicle will be managed by Emerging Asia Infrastructure Credit Fund GP S.a r.l., with BlackRock serving as fund manager through BlackRock Financial Management Inc.
The fund aims to mobilise institutional investors, including regional insurance companies, into climate-focused debt investments in emerging Asia, where financing gaps remain significant for industrial transition projects.
The project comes as development finance institutions and global asset managers increasingly seek to crowd in private capital into hard-to-abate sectors such as manufacturing, heavy industry and energy-intensive infrastructure, particularly in emerging markets facing mounting pressure to decarbonise while sustaining economic growth.
According to the documents, around 45% to 55% of the fund’s portfolio is expected to focus on industrial decarbonisation projects.
Target technologies include green hydrogen, carbon capture, utilisation and storage (CCUS), electrification, sustainable aviation fuel, and circular economy initiatives. Individual investments are expected to range between $25 million and $75 million.
IFC said it would also provide advisory support to the fund’s Industrial Transformation Council, including policy dialogue, market analysis and technical assistance aimed at building a pipeline of climate-aligned investments.
The lender said the blended finance component is intended to improve the risk-return profile of the vehicle and encourage broader institutional participation in industrial decarbonisation financing.
The fund will exclude coal, oil and gas-related activities, as well as higher-risk projects involving involuntary resettlement, significant biodiversity impacts or major occupational health and safety risks, according to the disclosure.
Business News Asia