Southeast Asia-focused investment finance facility to increase opportunities for Australian companies

The Australian government-backed Southeast Asia Investment Financing Facility (SAIFF) was announced by prime minister Anthony Albanese during the Association of Southeast Asian Nations (ASEAN)-Australia Special Summit held in Melbourne this week. The fund will be managed by the Australian government's export credit agency, Export Finance Australia, and will provide loans, guarantees, equity and insurance for projects that will boost Australian trade and investment in Southeast Asia, with a particular focus on supporting the region's clean energy transition and infrastructure development.

The new facility was one of a number of initiatives announced at the summit, including a AU$140 million commitment over four years to extend the Partnerships for Infrastructure Program. Established in 2021, the program has so far helped to advance transport connectivity, the transition to clean energy, and telecommunications reforms in Southeast Asia.

Melbourne-based corporate law expert Andrew Fisken of Pinsent Masons said the initiatives could offer fresh opportunities for Australian companies previously unable to access the Southeast Asian market.

“Southeast Asia is a market of particular interest to our clients in many sectors.  Australia has so many market leading businesses which excel in the clean energy and infrastructure space; the proposed investment facility, coupled with the other support announced by the government over the past few days, will open doors in the region, giving opportunities for smaller and medium enterprises that were previously only able to be accessed by Australia’s largest companies,” Fisken said.

Project finance expert James Harris of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, said: “For many years, the Australian government has supported development initiatives in Southeast Asia through its Department of Foreign Affairs and Trade and third-party organisations such as the Indonesia Australia Partnership for Infrastructure (known as KIAT), the Snowy Mountains Engineering Corporation (known as SMEC), and other non-governmental organisations.”

“The size and scale of this proposed investment facility initiative is a tremendous boost for the ASEAN markets supporting clean energy transition and infrastructure development. It provides a win-win for all involved and further strengthens existing economic and cultural ties.”

Sydney-based corporate law expert Joni Henry of Pinsent Masons said: “The SAIFF investment fund will facilitate the cross-border investments and global co-operation that is critical to the transition to renewable energy and tackling climate change. It will benefit our clients and communities in both regions.”