HSBC Holdings and Singaporean sovereign wealth fund Temasek have set up a debt platform to finance sustainable infrastructure projects.
The firms will invest up to $150m (€129m) in total to fund loans, working alongside the platform’s strategic partners in the initial phase of the platform which will focus on Southeast Asia. The plan is to build a pipeline of projects to scale, with the platform dispensing over $1bn of loans within 5 years.
The Asian Development Bank and Clifford Capital Holdings will support the platform as strategic partners.
HSBC and Temasek said a portion of the Singapore-based platform’s loan portfolio will target ”marginally bankable, sustainable infrastructure projects, providing project development expertise, technical assistance and blended finance solutions where needed”.
The platform will target renewable energy and storage, water and waste treatment and sustainable transport to help meet carbon reduction targets and build resilience to offset the impact of climate change.
Noel Quinn, group CEO of HSBC, said: “This innovative partnership aims to tackle some of the biggest barriers to financing sustainable infrastructure where it’s needed the most. Neither private nor public sector can close the financing gap alone – but by working with Temasek, the Asian Development Bank and Clifford Capital, we can deploy significant amounts of blended finance for projects in Southeast Asia that would otherwise go unfunded.
”Collaborations matter in the fight against climate change, and this partnership provides an impactful model for others to follow.”
Dilhan Pillay, CEO of Temasek International, said: “As an investor committed to sustainability at our core, we are keen to explore innovative solutions to address critical infrastructure needs especially in emerging markets in Asia, that will contribute to the transition to net-zero.
“Public funding alone will not cover the scale of climate change mitigation and transition required across Southeast Asia. By joining forces, we can catalyse our capital, multiplying impact and scaling to meet the opportunities.”
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