Philippines set to benefit as IFC invests $25M in infra fund
The Philippines is expected to benefit from a $25-million investment from the International Finance Corporation (IFC).
The outlay is intended for an infrastructure fund launched by Singapore-based Seraya. Projects are related to digital networks and renewable energy.
The private-sector focused unit of the World Bank Group disclosed this on Oct. 2.
The IFC said the fund will channel money into data centers, fiber networks, battery storage, smart grids and solar and wind projects through two investment “sleeves.”
One is the Developed Asia sleeve, which covers Australia, Japan, New Zealand, Singapore and South Korea.
Another is the Southeast Asia sleeve, which will focus on emerging markets such as Indonesia, Malaysia, the Philippines, Thailand and Vietnam.
Seraya was founded in 2020 and has offices in Kuala Lumpur, Tokyo and Seoul. It specializes in digital infrastructure and the energy transition.
$1-billion fund
The infrastructure fund is seeking to raise between $1 billion and $1.5 billion. IFC’s proposed $25-million equity commitment will go to the Southeast Asia sleeve.
The IFC noted that its participation is expected to be crucial in helping Seraya secure an initial closing. This, given the manager’s short track record in emerging markets.
Additional capital from institutional investors and development finance institutions will be needed to meet the fund’s target, the IFC added.
“The fund’s Southeast Asia sleeve aims to increase access to quality infrastructure… to address significant gaps in infrastructure in emerging markets,” the IFC said.
“In addition to strengthening the infrastructure equity market in emerging markets, the fund’s success will demonstrate the commercial viability of the equity fund model and open new pathways for institutional investors to invest in the region,” it added.
For fiscal 2025, the IFC committed a record $71.7 billion to private companies and financial institutions in developing countries. This entails mobilizing private capital in support of poverty reduction and climate resilience.
