Singapore-based investment manager Circulate Capital announced a new green loan facility agreement with HSBC, aimed supporting its ability to deploy capital rapidly and achieve greater impact across South and Southeast Asian circular economy investments.
Launched in 2018, Circulate Capital was founded with an initial focus on investing in solutions for the ocean plastic crisis in South and Southeast Asia, and has since broadened its investment focus to plastic circularity, including disruptive innovations across value chains, throughout the world’s high-growth markets.
The new facility follows the recent first close of its Circulate Capital Asia II fund, raising $220 million for investments to scale circular supply chains and recycling businesses across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia.
The company said that the loan proceeds will provide it with a flexible source of liquidity to support investment activities, enabling the firm to act with increased agility when investment opportunities arise by leveraging the facility. The loan facility is also designed to scale in size as the fund grows and can be extended in duration as required.
Regula Schegg, Founding Partner, CFO & CCO, Circulate Capital said:
“The facility enables us to move at the pace required to capitalize on impactful transactions we see in the market, with highly efficient access to capital, to the strategic benefit of our investors.”
Gilbert Ng, Head of Banking, Corporate and Institutional Banking, at HSBC Singapore added:
“Circulate Capital is helping to scale the circular economy across South and Southeast Asia, and we are pleased to support them with this revolving green loan facility. With funding still a barrier for many sustainability initiatives in this region, banks have a key role in unlocking capital for real-economy impact.”
