The Monetary Authority of Singapore (MAS), Singapore’s central bank and financial regulator, has announced the first close of the Green Investments Partnership (GIP), securing $510 million in commitments. This blended finance initiative aims to invest in green and sustainable infrastructure opportunities across Southeast and South Asia.
Investors and financiers committing to the fund include the Australian Government, represented by Export Finance Australia, International Finance Corporation, the Dutch Entrepreneurial Development Bank (FMO), HSBC, Temasek, British International Investment, Bank of the Philippine Islands, and Allied Climate Partners. Additionally, the European Commission is supporting the GIP through its Global Gateway programme.
Blended finance combines public or philanthropic capital with private funding through a common investment structure. This approach enables investors to engage in investments with high perceived risk profiles, such as emerging climate mitigation technologies.
The GIP is part of Singapore’s Financing Asia’s Transition Partnership (FAST-P), a blended finance initiative launched in 2023. FAST-P aims to unite public, private, and philanthropic capital to aid Asia’s green transition. The initiative seeks to address the region’s significant climate finance gap by utilizing innovative blended and tiered capital structures to attract large-scale investment.
The newly established fund will provide debt financing for climate-related, marginally bankable sustainable infrastructure in Southeast and South Asia. Key investment areas include renewable energy and storage, electric vehicle infrastructure, sustainable transport, water and waste management, and other sectors related to energy transition.
GIP will be managed by Pentagreen Capital, a debt financing platform focused on accelerating the development of sustainable infrastructure in Asia, launched in 2022 by HSBC and Temasek.
Gillian Tan, Assistant Managing Director and Chief Sustainability Officer of MAS, stated, “The first close of the Green Investments Partnership is an important milestone for FAST-P. Pentagreen has brought together a diverse group of partners, participating across the different commercial and concessional tranches of the capital structure to de-risk and finance marginally bankable green infrastructure projects in the region. MAS welcomes participation by a broader community of partners in FAST-P to mobilise and scale blended finance for Asia’s transition.”
