HSBC and Singapore-based investment company Temasek announced today a new partnership to establish a debt financing platform for sustainable infrastructure projects in Asia. The companies will invest up to a combined $150 million of equity to fund loans in the initial phase, with a longer-term ambition to facilitate over $1 billion of loans over 5 years.
According to the companies, the Singapore-based platform aims to catalyse significant capital flows to the underserved sustainable infrastructure space, with a meaningful portion of the platform’s loan portfolio will target marginally bankable projects. The platform will also provide project development expertise, technical assistance and blended finance solutions where needed.
Additional partners on the platform include the Asian Development Bank (ADB), providing technical assistance and project development expertise, and Clifford Capital Holdings providing project finance expertise as well as operational mid and back office support.
Noel Quinn, Group Chief Executive 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.”
Initially focusing on Southeast Asia, the platform will target projects that help meet carbon reduction targets and offset the impact of climate change, including energy and storage, water and waste treatment and sustainable transport.
Dilhan Pillay, Chief Executive Officer 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. Partnerships like this demonstrate Temasek’s commitment to a spectrum of sustainable solutions, and highlight the urgency of action required to get us all to net zero.”
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