The platform will provide debt financing for projects in Asia, with an initial focus on Southeast Asia, as part of efforts to reduce climate change.
Temasek will be working with HSBC to catalyse financing of marginally bankable sustainable infrastructure projects, so as to address the challenges and opportunities presented by climate change, according to an announcement on Thursday.
The two sides will initially invest $150 million of equity to fund loans, with a goal to scale up the platform to $1 billion of loans within five years to support commercial development of the region’s sustainable infrastructure sector.
Based in Singapore, the platform aims to harness the market’s financial expertise and connectivity to scale up the development of sustainable infrastructure across Southeast Asia in time, the announcement said.
Blended Finance
«Neither private nor public sector can close the financing gap alone,» Noel Quinn said. «Collaborations matter in the fight against climate change, and this partnership provides an impactful model for others to follow.»
The platform will target renewable energy and storage, water and waste treatment and sustainable transport to help meet carbon reduction targets and build resilience to offset the impact of climate change.
Strategic partners Asian Development Bank will provide technical assistance and project development expertise, while Clifford Capital Holdings will provide its project finance expertise as well as ongoing operational mid and back office support to the platform.
