CDC expands Asia footprint
UK development finance institution CDC Group, already an active investor in South Asia, has announced a strategic pivot toward the broader region with a special interest in Southeast Asia.
Asian expansion is the centerpiece of the group's latest five-year agenda, which also includes less aggressive buildouts in Africa and the Caribbean. Focus geographies under the plan include Indonesia, the Philippines, Vietnam, Cambodia, and Laos.
The idea is to invest GBP1.5-2 billion ($2-2.7 billion) by 2026 with a renewed focus on climate-related initiatives and gender-lens investing. CDC indicated that it intended to represent the UK’s national reputation for sustainable and equitable economic outcomes, ethics, standards, and transparency by rebranding next year to British International Investments.
“We will be a trusted partner to countries across our markets that want to create sustainable and prosperous futures for their people,” Nick O’Donohoe, CEO of CDC, said in a statement. “We will deliver on the UK’s promise to support emerging economies to combat the climate emergency and track the impact of each investment to ensure every penny is used productively.”
Infrastructure, including a strong focus on renewable energy, is set to be a core theme. Activity in this area to date includes partnerships and investments in India’s Ayana Renewable Power and Pakistani wind farm Zephyr Power, as well as plans to invest up to $1 billion in climate funding in India over the next five years.
CDC has been active in Asia since the 1990s. Its current portfolio is said to include some 400 businesses worth a combined $2.2 billion.
India has been the core geography to date, with key investments including grocery delivery app BigBasket and logistics provider Ecom Express. Recent fund commitments in the country have included SAIF India, now known as Elevation Capital, and Chiratae Ventures.
In 2019, the firm pledged to invest $1.7 billion in South Asia, including Myanmar, before 2023. Recent direct investments in the region include Bangladesh lender BRAC Bank and Myanmar internet provider Frontiir, while fund commitments include a Pakistan VC vehicle from Gobi Ventures and local conglomerate Fatima Group.
Nepal has emerged as an area of interest in the past few years, with CDC noting encouraging signs for private equity in the country, including the removal of foreign debt restrictions in 2019. Investments include NMB Bank, internet provider WorldLink, and an LP commitment to Dolma Fund Management.
In May, CDC launched Nepal Invests alongside a group of other development banks as a platform for supporting foreign direct investment by providing flexible capital and promoting local entrepreneurs and private innovation activities. Last year, Rabi Rayamajhi was named CDC’s first country representative for Nepal.
The Asia pivot coincides with the nomination of Diana Layfield as its first female chairperson. Layfield is Google’s president for Europe, Middle East, and Africa partnerships and a former CEO of Standard Chartered Bank’s Africa business.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.