Singapore-based Temasek Holdings Limited (Temasek) and HSBC Holdings will launch a debt finance platform to aid in the financing of sustainable infrastructure projects in Southeast Asia. The two agencies will jointly invest up to USD150 million in the initiative. The platform’s long-term goal is to establish a pipeline of projects that can be scaled, with the platform aiming to disburse more than USD1 billion in loans in the next five years.
The funds will be used to finance multiple renewable energy (RE) and storage, water and waste treatment and sustainable transport projects in the SEA region, which will help reach carbon reduction goals and mitigate the effects of climate change. By providing development knowledge, technical help, and blended finance solutions as needed, a significant percentage of the loan portfolio will target marginally bankable, sustainable infrastructure projects.
The Asian Development Bank (ADB) and Clifford Capital Holdings, a specialist provider of debt financing solutions, will act as the strategic partners in operating the debt financing platform.