Ukko Renewable secures $50 million for Southeast Asia renewables

Ukko Renewable secures $50 million for Southeast Asia renewables

The Emerging Africa & Asia Infrastructure Fund has signed a $50 million debt facility with Ukko Renewable to accelerate renewable energy projects across Southeast Asia.

Illustration photo: Shutterstock

Announced on July 29, the facility will enable Ukko Renewable, a subsidiary of Groupe Duval, to develop an initial pipeline of over 2 GW of wind, within a broader pipeline of more than 3 GW of wind, solar and hydropower projects across Vietnam, and other regional markets.

The facility reinforces the commitment of the Emerging Africa & Asia Infrastructure Fund (EAAIF) and Groupe Duval to support the energy transition in high-growth Southeast Asian markets.

Ukko Renewable is developing one of Southeast Asia’s most diversified renewable energy pipelines, spanning onshore wind, ground-mounted and rooftop solar, run-of-river hydro and pumped storage projects. Ukko Renewable has secured an initial 1.4 GW pipeline in Vietnam – with projects prioritised under Vietnam’s revised Power Development Plan VIII – that scales to a broader 2.1 GW pipeline, in addition to a series of wind and hydro assets in the Philippines, which boasts a highly supportive rules-based Green Energy Auction Programme.

EAAIF's funding will enable Ukko Renewable to advance the initial pipeline to a 'ready-to-build' state, ensuring that the projects are developed to international standards and can attract long-term commercial and institutional capital to progress construction for operations. Ukko Renewable is backed by Groupe Duval, which provided initial growth capital alongside strong corporate governance support and expertise in infrastructure delivery in emerging markets.

Once the targeted initial pipeline is successfully delivered and operational, it is estimated to avoid approximately 2.2 million tonnes of CO₂ equivalent each year and benefit over 2.8 million end-users.

This transaction marks a significant milestone in EAAIF’s commitment to climate finance in emerging markets and its expanding mandate in Asia.

Martijn Proos, co-head of Emerging Market Alternative Credit at Ninety One, the fund manager of EAAIF, said, "This transaction with Ukko Renewable underscores EAAIF’s commitment to accelerating climate finance and demonstrates the central role of targeted lending in transition markets. This supports the development of green-field assets and creates a pathway to attract commercial and institutional investment, accelerating the clean energy transition in Vietnam and the Philippines."

The transaction also represents a major landmark in Ukko Renewable's growth strategy and provides the financial resources key to accelerating one of the region's most varied portfolios of renewable energy projects.

Christophe Guyard, CEO of Ukko Renewable, said, “This facility strengthens our financial capacity, validates our team's track record and enables us to efficiently advance our broader pipeline of over 3 GW of renewable energy assets, which will deliver crucial clean power and energy security to rapidly growing economies in Southeast Asia.”

VIR