The Emerging Africa and Asia Infrastructure Fund has agreed to provide senior secured debt financing of up to 50 million dollars to Ukko Renewable, a renewable energy platform operated by Groupe Duval in Southeast Asia. The facility is designed to support the development of renewable energy projects across Vietnam, the Philippines, and other nations in the region, with an initial project pipeline exceeding two gigawatts and a broader prospective portfolio surpassing three gigawatts.
The financing encompasses multiple renewable energy technologies, including onshore wind, solar, and hydroelectric installations. Ukko Renewable has already secured an initial 1.4 gigawatt pipeline in Vietnam that has been prioritized under the country’s updated Power Development Plan Eight. The company is also expanding wind and hydroelectric assets in the Philippines through opportunities created under the national Green Energy Auction Program.
Early stage project development in Southeast Asia frequently encounters financing challenges due to limited availability of private capital willing to accept the risks associated with pre-construction activities such as site identification, grid connection studies, and preliminary engineering work. The debt capital from the fund is intended to bring these greenfield renewable projects to a ready-to-build state, positioning them to meet international standards and attract subsequent long-term commercial investment.
Once the targeted initial pipeline becomes fully operational, it is projected to offset approximately 2.2 million metric tons of carbon dioxide equivalent annually and supply electricity to over 2.8 million end users. Executives from both organizations emphasized the importance of public-backed finance working alongside private sponsors to accelerate the energy transition in the region and mobilize the capital required for Asia’s green energy development.
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