Pentagreen Capital Fund Management’s Green Investments Partnership (GIP) programme has reached $800m (£597.7m) in committed capital at second close, up from $510m, to help fund Asia’s green transition.
GIP is a flagship blended finance programme under Singapore’s Financing Asia’s Transition Partnership (FAST-P) and is the first platform under the initiative to reach closing.
Among the partners to have joined the GIP at the second close are commercial capital providers DBS and Cathay United Bank, which each entered into senior tranche lending arrangements with GIP, as well as a new industry partner that joined the junior part of the programme. Several existing investors also increased their participation at its second close.
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The FAST-P initiative was launched by the Monetary Authority of Singapore to bring together public, private and philanthropic capital to finance Asia’s green transition.
Under FAST-P, the GIP programme will deploy blended debt financing to support capital-constrained sustainable infrastructure projects in Southeast and South Asia.
The GIP uses a blended and tiered capital structure to “crowd in” capital at scale.
According to Pentagreen, in order to meet their development and climate targets, Asia’s developing economies require an estimated $1.7tn of infrastructure investments annually until 2030.
Pentagreen Capital, which is the sustainable infrastructure debt financing platform jointly formed by HSBC and Temasek, has identified a 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.
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“The second close of the Green Investments Partnership reflects the strong momentum it has achieved since launch,” said Marat Zapparov, chief executive of Pentagreen Capital. “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, chief executive of the FAST-P office, said he is “encouraged” by GIP’s continued progress and the momentum achieved at its second close.
“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,” Madni added.
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