Singapore’s blended finance programme FAST-P has taken a major step forward, with its Green Investments Partnership (GIP) reaching a first close of US$510 million.
The fund will support green and sustainable infrastructure projects across Southeast and South Asia, backed by a strong pipeline of deals.
The Monetary Authority of Singapore (MAS) said commitments came from a mix of public, private and philanthropic investors.
These include MAS itself, the Australian Government through Export Finance Australia, International Finance Corporation, Dutch development bank FMO, HSBC, Temasek, British International Investment, Bank of the Philippine Islands and Allied Climate Partners.
The European Commission is also supporting GIP under its Global Gateway programme.
Pentagreen Capital, a debt financing platform set up by HSBC and Temasek, will manage the fund.
Investments will target renewable energy, storage, electric vehicle infrastructure, sustainable transport, water, waste management and other areas vital to the region’s energy transition.
Launched in 2023, FAST-P was created to combine public, private and philanthropic capital to help close Asia’s climate finance gap.
GIP is the first fund under the programme to reach a close, pooling concessional and commercial capital from governments, multilateral institutions, philanthropies and private investors.
It will provide debt financing for marginally bankable projects that often face difficulties securing funding due to risks in development and construction.
FAST-P also includes the Industrial Transformation infrastructure debt programme, which focuses on decarbonisation projects in hard-to-abate sectors.
The Energy Transition Acceleration Finance partnership supports renewable energy, grid modernisation and the early retirement of coal assets.
Gillian Tan, Assistant Managing Director (Development & International) and Chief Sustainability Officer of MAS said,
“The first close of the Green Investments Partnership is an important milestone for FAST-P. Pentagreen has brought together a diverse group of partners, which are 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.”
Munib Madni, CEO of FAST-P Office said,
“The FAST-P Office congratulates all our partners who have come together to achieve this milestone and extends our heartfelt gratitude for their commitment.
The FAST-P Office looks forward to continuing the work with Pentagreen, our partners in other pillars, and the broader ecosystem of commercial and concessional investors, to promote blended finance solutions for sustainable infrastructure in the region.”
Featured image: Edited by Fintech News Singapore, based on image by lifeforstock via Freepik
