New York-based global asset management giant BlackRock Financial Management Inc. (BlackRock) is looking to expand investments in Southeast Asia, including the Philippines, through a climate-focused infrastructure debt fund backed by International Finance Corp. (IFC).

In a May 20 disclosure, the World Bank Group’s (WBG) private-sector arm said it committed up to $50 million in equity investments to the Emerging Asia Infrastructure Credit Fund SCSp (EAICF), a blended finance fund targeting $750 million in total capital.

IFC’s investment was approved last Jan. 8 and signed on May 14. according to the disclosure.

EAICF will provide senior, mezzanine, and subordinated debt financing to private-sector projects supporting industrial decarbonization and low-carbon growth across Southeast Asia, with the Philippines identified as one of its key target markets alongside Cambodia, Indonesia, Laos, Malaysia, Thailand, and Vietnam.

IFC said 80 percent of the fund’s capital commitments will focus on Southeast Asia, while the remaining 20 percent may be invested in South Asia, particularly Bangladesh, India, and Sri Lanka.

Under the proposed investment structure, IFC will provide up to $40 million in a senior tranche and another $5 million in a junior tranche for its own account. An additional $5-million junior tranche will be supported by IFC’s Frontier Opportunities Fund (FOF).

IFC described EAICF as a blended finance vehicle, which combines public or concessional funding with private capital to reduce investment risks and encourage private-sector participation in projects that may otherwise struggle to attract financing.

The blended finance structure aims to reduce risks for private investors and encourage more funding for industrial decarbonization projects and emerging climate technologies across Asia.

“The blended finance co-investment will also facilitate institutional investment in industrial decarbonization projects and emerging climate technologies and may provide the basis for replication, boosting funding mechanisms to channel financing towards industrial decarbonization,” IFC said.

In particular, the fund is expected to support projects involving green hydrogen, carbon capture, utilization and storage (CCUS), electrification, sustainable aviation fuel, and circular economy technologies.

IFC said EAICF aims to support at least 10 investments ranging from $25 million to $75 million each, with an average investment size of $50 million.

According to IFC, the project is expected to improve access to climate finance in Southeast Asia and help channel long-term funding toward industries transitioning to low-carbon growth.

Also, IFC said the fund could help deepen climate finance markets in the region by demonstrating the viability of debt funds focused on industrial decarbonization while mobilizing institutional capital, including from insurance companies.

IFC noted that BlackRock will serve as the manager and sponsor of EAICF through Emerging Asia Infrastructure Credit Fund GP S.a r.l., the Luxembourg-based project company established under a special limited partnership structure.

As part of the project, IFC said it is working with BlackRock to strengthen the fund’s environmental and social safeguards, including enhanced risk screening, governance, disclosure standards, and due diligence procedures.

IFC added that the financing vehicle will not support coal-related, oil and gas, or other higher-risk activities involving involuntary resettlement, adverse impacts on indigenous peoples (IPs), or significant environmental and occupational safety risks.

IFC expects to complement the investment with advisory services supporting industrial decarbonization efforts through technical assistance (TA) and policy engagement.