DBS is providing a US$210 million senior financing facility to ETAFCo, the investment vehicle for an energy transition partnership managed by Clifford Capital.
The transaction makes DBS the only commercial bank to support two partnerships within the Monetary Authority of Singapore‘s (MAS) FAST-P initiative.
The financing marks the first loan extended to ETAFCo. The funds will support debt investments in energy transition infrastructure.
This includes renewable energy, grid modernisation, and energy storage. It also covers other clean energy solutions designed to reduce reliance on coal-fired power generation.
The Energy Transition Acceleration Finance (ETAF) partnership aims to mobilise concessional and private capital for clean energy projects across Asia.
It supports emissions reduction by financing clean energy solutions to displace coal usage. A replacement strategy also supports the managed phase-out of coal facilities.
“We believe that sustainability is not a parallel agenda but a core driver of long-term value,”
said Han Kwee Juan, Group Head of Institutional Banking, DBS.
“When approached pragmatically, it strengthens economic competitiveness, improves lives and builds resilience for the future.”
The FAST-P initiative brings together public, private, and philanthropic capital. The programme uses blended finance structures to address the infrastructure needs of Asia by mobilising capital for green investments.
In its first phase, ETAFCo will focus on clean energy transition and grid infrastructure projects. By improving risk allocation, the vehicle aims to support bankable transition infrastructure and unlock new pools of capital for the region.
DBS previously contributed US$75 million to the Green Investments Partnership, another blended finance vehicle under FAST-P managed by Pentagreen Capital.
The bank acts as the lead coordinator for the senior tranche of that programme.
Featured image credit: Edited by Fintech News Singapore, based on image by LensMastersCollection via Magnific
