50462 - ISQ Growth Markets Infrastructure Fund II (UST), L.P.

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Investment Information

Project Number

50462

Company Name

ISQ Growth Markets Infrastructure Fund II (UST), L.P.

Date SPI Disclosed

Mar 5, 2025

Country

Southeast Asia Subregion

Region

East Asia and the Pacific

Projected Board Date

Apr 4, 2025

Environmental Category

FI-1 - Significant

Status

Pending Disbursement

Last Updated Date

Jun 10, 2025

Department

Regional Industry - INF Asia & Pac

Industry

other

Previous Events

Approved : May 8, 2025
Signed : Jun 5, 2025

Sector

Infrastructure Fund

Project Description

The proposed project comprises a US$75 million equity investment in ISQ Growth Markets Infrastructure Fund II (“the Fund”), an infrastructure fund established by I Squared Capital (“ISQ”). The Fund will generally focus on the key sectoral themes of Digital, Energy Transition, Transportation and Logistics, Environmental (waste management and sustainable water), and Social infrastructure in certain jurisdictions that are not member states of the Organization for Economic Co-operation and Development (the “OECD”), as well as the following members of the OECD: as determined by the General Partner in its sole discretion, certain Asia Pacific jurisdictions, including Australia, the Republic of Korea and Japan, and certain Latin American jurisdictions, including Chile, Colombia and Mexico (collectively, the “Target Jurisdictions”).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	75.0

Development Impact

The Fund aims to increase access to private equity capital and value creation for infrastructure projects in Target Jurisdictions, addressing significant infrastructure gaps in emerging markets jurisdictions. The Fund will support infrastructure needs by investing across areas of: transport and logistics, digital infrastructure, and energy transition and efficiency in countries including India, Brazil, Philippines, Indonesia, Thailand, and Colombia. The initiative aims to strengthen the infrastructure equity market in emerging markets, demonstrating the commercial viability of such investments and attracting more institutional investors.

IFC additionality is both financial and non-financial. Financial additionality involves supporting the Fund to mobilize additional capital from new investors, including institutional investors and other development finance institutions (DFIs). Non-financial additionality includes supporting ISQ to enhance the Fund’s Sustainability Procedures. Further, IFC will act as a strategic partner, providing ongoing support and feedback on sensitive and critical issues in Target Jurisdictions. For instance, as needed, IFC will introduce ISQ to market participants, technical experts, other key stakeholders, or coordinate meetings with IFC’s Industry Specialists and relevant teams in target markets. IFC’s presence as a key investor in the Fund provides comfort and ensures the Fund will be managed and pursue an investment strategy in adherence to international standards and adequate risk mitigation.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
N/A	N/A		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed project entails an IFC investment in the Fund. The sectors that the Fund plans to invest in are technology and telecom (towers, fiber optic cables, internet service providers, data centers), transportation (e-mobility, airport services, port and maritime logistics), renewable energy, industrial waste management facilities and cold storage facilities. While the Fund plans to invest mainly in projects with limited E&S risks and impacts, it is possible that some investees may have significant adverse E&S risks and potential impacts. Thus, the project has been categorized as FI-1 according to IFC’s Policy on Environmental and Social Sustainability. Applicable E&S requirements for the Project will be IFC’s Exclusion List, national E&S laws and regulations, and the IFC Performance Standards, subject in all respects to applicable law or regulation, as amended or supplemented from time to time. IFC will not support the mining of thermal coal and electricity generation from thermal coal. IFC will have the ability to opt out of oil and gas related sub projects. The main E&S risks and impacts of this project derive from activities of the Fund’s investee companies and their E&S capacity and systems in place to manage these risks as well as ISQ’s capacity to adequately assess E&S risks, require corrective actions where needed, and monitor their implementation. IFC acknowledges ISQ’s fiduciary obligations under the Investment Advisers Act of 1940.

ISQ applies its Responsible Investment (RI) Policy and has in place its Sustainability Procedures for the Fund. The RI Policy outlines ISQ’s approach to sustainability and integrating sustainability considerations into its operations. The RI policy is publicly available at https://isquaredcapital.com/wp-content/uploads/2024/01/ISQ-RI-Policy-01.26.2024.pdf. The Fund Sustainability Procedures are intended to align with IFC’s Performance Standards. ISQ has an in-house E&S organization supported by third-party expert organizations as needed in various steps throughout the investment cycle. The Sustainability Procedures define E&S roles and responsibilities and includes procedures for E&S considerations in decision-making. Key steps in Fund Sustainability Procedures include screening of investments against exclusions; desk-based E&S risk review; E&S Due Diligence (ESDD) by appropriate third party agencies for Category A and selected Category B projects; provision of E&S inputs and E&S Action plans (ESAPs) for investments approval as well as E&S supervision including monitoring by third party for Category A sub projects. After acquisition of each portfolio company, ISQ’s team works with the portfolio company’s leadership to implement actions plans based on ESDD finding; and manage E&S risks on an ongoing basis. ISQ has an internal grievance mechanism and has provisions on its website to enable stakeholders to file concerns. The Fund’s Sustainability Procedures require portfolio companies to put in place employee and community grievance mechanisms. Portfolio companies will be required to report on E&S performance periodically. IFC will monitor the Fund’s E&S performance, including reviewing its first three ESDDs as well as all Category A sub-projects to confirm the E&S management system has identified E&S risks consistent with IFC requirements. IFC will also have the option to opt out of any Category A sub-project for which IFC considers the ESDD or ESAP insufficient. The Fund will report its E&S performance to IFC on an annual basis. IFC will review such reports and conduct site-based supervision at the Fund level and on a sample basis at the sub-project level. The Fund will also externally disclose Category A and Category B projects on an annual basis, including their names, sector and locations.

S.no	Title	Anticipated Completion Date
1	Sustainability System	04/15/2025
2	Stakeholder Grievance Mechanism	04/15/2025

Contacts

For Inquiries About the Project, Contact

I Squared Capital
Dominic McMullan
Principal, Global Communications and External Affairs
786-693-5700
Info@isquaredcapital.com
600 Brickell Avenue, Miami, Florida 33131, USA
isquaredcapital.com

For Inquiries and Comments About IFC, Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation

Similar Projects

Contacts

Projects

Summary of Investment Information

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

IFC's Investment as Approved by the Board

Location of Project and Description of Site

Development Impact

Anticipated Impact Measurement & Monitoring (AIMM) Assessment

IFC's Role and Additionality

Development Results

E&S Category Rationale / Risks and Mitigation

Environmental & Social Categorization Rationale / Key Risks & Potential Impacts

Financial Intermediary Sub-Project Disclosure

Environmental & Social Management System (ESMS)

Mitigation Measures / Environmental & Social Action Plan (ESAP)

Press-Release

Related Environmental Document

Similar Projects

Contacts

Information on E&S Complaints and Grievance Mechanisms

Disclaimer