Pentagreen Capital, the sustainable infrastructure debt financing platform established by HSBC and Temasek, has secured an additional $290m (€250m) for its Asia-focused blended finance strategy, Green Investments Partnership (GIP).
The capital injection, which brings GIP’s total commitments to $800m, was achieved with the backing of investors including financial institutions DBS and Cathay United Bank.
The latest partners to join GIP at its second close also include a new industry partner, alongside several existing backers who have increased their capital commitments, Pentagreen Capital said.
In September last year, Temasek and the Monetary Authority of Singapore were among the investors to commit $510m to the first close of the GIP programme.
Other investors at the time included government agencies and global banks such as Export Finance Australia, the Dutch Entrepreneurial Development Bank, British International Investment, Bank of the Philippine Islands, HSBC, Allied Climate Partners and the International Finance Corporation. The European Commission supported GIP under its Global Gateway programme.
GIP, a blended finance partnership under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, deploys capital to green infrastructure projects across the region.
Pentagreen Capital said it has a strong pipeline of green and sustainable infrastructure opportunities in Southeast and South Asia, across sectors including renewable energy and storage, electric vehicle infrastructure, sustainable transport, and water and waste management.
Kelvin Wong, chief sustainability officer at DBS, said: “Transition projects have historically struggled to attract commercial financing at scale because of perceived risks associated with such undertakings. The FAST-P initiative is a prime example of public-private partnerships to crowd in capital that Asia’s transition urgently needs.
“By stepping in as lead coordinator of the senior tranche for the Green Investment Partnership, DBS is honoured to be one of the first commercial banks supporting this effort to help de-risk and scale the availability of bankable projects.”
Michael Wen, EVP at Cathay United Bank, said: We are pleased to work with the Monetary Authority of Singapore, Temasek and HSBC on the second close of GIP, marking Cathay United Bank’s participation in this important blended finance platform as the inaugural Taiwanese bank.
“This milestone underscores Cathay United Bank’s role in supporting international sustainable finance cooperation, while advancing our expansion across the Asia Pacific region and contributing our experience in sustainability.”
Marat Zapparov, CEO of Pentagreen Capital, said: “The growing number of partners demonstrates increasingly widespread recognition of the critical importance of blended finance to mobilising the funding required for Asia’s energy transition, to deliver stronger economic resilience and common prosperity in the region.”
Munib Madni, CEO of the Financing Asia’s Transition Partnership office, said: “Pentagreen Capital has played an important role in developing and implementing GIP, and FAST-P appreciates the commitment of both existing and new partners who have chosen to participate in GIP.
“Their collective support underscores the role that well-structured vehicles can play in mobilising capital for Asia’s green and sustainable infrastructure and advancing the region’s broader transition objectives.”
To read the latest IPE Real Assets magazine click here.
