The Monetary Authority of Singapore (MAS) and the Private Infrastructure Development Group (PIDG) have anchored the $250m (€221m) first close of a blended-finance fund that will invest in grid modernisation and the replacement of coal-fired power generation in Asia.
The Energy Transition Acceleration Finance (ETAF) partnership, launched under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, is also expected to attract catalytic capital from state-owned Temasek.
DBS Bank is also participating by providing senior debt to ETAF, supported GuarantCo, part of UK-headquartered PIDG, which has provided a guarantee for ETAF’s mezzanine financing structure, “to enhance its risk-return profile and crowd in additional commercial investment”.
ETAF, managed by Clifford Capital, will target early-stage or higher-risk Asian energy-transition infrastructure, with a focus on grid modernisation to phase out fossil fuels and the replacement of coal-fired power with lower-emission alternatives.
Gillian Tan, assistant managing director, development and international at MAS, said: “ETAF’s successful first close demonstrates FAST-P’s growing momentum and traction.
“Through innovative blended-finance models and guarantee mechanisms, FAST-P is bringing a broader coalition of partners together to meet Asia’s transition financing needs.”
Munib Madni, CEO of the FAST-P Office, said: “ETAF demonstrates how the FAST-P platform can bring together complementary partners, capital providers and risk-sharing solutions to develop investable transition finance vehicles.
“Achieving first close establishes a strong foundation for ETAF’s next phase of growth and for mobilising additional capital towards Asia’s transition infrastructure needs.”
Murli Maiya, CEO of Clifford Capital, said: “ETAF’s blended finance structure is designed to mobilise capital towards projects that accelerate the displacement of fossil fuel-based generation through grid modernisation and other transition infrastructure investments, while addressing barriers that have traditionally constrained investment in transition opportunities.
Philippe Valahu, CEO of PIDG, said: “The successful first close demonstrates the value of bringing together complementary forms of capital and expertise to address Asia’s transition financing needs.
“Bringing our de-risking capabilities to the fund with guarantee support and catalytic capital, PIDG is helping to mobilise additional private institutional investment.”
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