The Monetary Authority of Singapore (MAS) has announced that the Green Investments Partnership (GIP), a blended finance fund under the Financing Asia’s Transition Partnership (FAST-P) initiative, has achieved its first close with US$510m in committed capital. This funding, sourced from a mix of global and regional private, public, and philanthropic institutions, will be channelled into green and sustainable infrastructure projects across Southeast and South Asia.
The GIP is supported by a diverse group of investors, including the Australian Government, International Finance Corporation, Dutch Entrepreneurial Development Bank, HSBC, Temasek, and British International Investment. The European Commission is also backing the initiative under its Global Gateway programme. Pentagreen Capital, established by HSBC and Temasek, will manage the fund, focusing on sectors such as renewable energy, electric vehicle infrastructure, and sustainable transport.
Launched in 2023, FAST-P aims to bridge the climate finance gap in Asia by leveraging blended and tiered capital structures. This approach seeks to mitigate risks associated with infrastructure investments, particularly during the project development and construction phases, thereby attracting international investors.
Gillian Tan, Assistant Managing Director and Chief Sustainability Officer of MAS, highlighted the significance of this milestone, stating, “Pentagreen has brought together a diverse group of partners… to de-risk and finance marginally bankable green infrastructure projects in the region.” Munib Madni, CEO of FAST-P Office, expressed gratitude to the partners, emphasising the ongoing commitment to promoting sustainable infrastructure solutions.
The successful first close of GIP marks a pivotal step in mobilising capital for Asia’s green transition, with future implications for expanding sustainable finance in the region.
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