Pentagreen Capital Reaches $800 Million Second Close for Asia Green Infrastructure Fund

Singapore-based sustainable infrastructure financing platform Pentagreen Capital has reached an $800 million second close for its Green Investments Partnership (GIP), a blended finance fund backing green and sustainable infrastructure across Southeast and South Asia. The fund forms part of Singapore's FAST-P blended finance initiative, launched by the Monetary Authority of Singapore in 2023.

Pentagreen Capital was launched in 2022 by HSBC and Temasek as a debt financing platform to accelerate sustainable infrastructure development in Asia. GIP deploys debt financing for climate-related, marginally bankable sustainable infrastructure in the region, targeting renewable energy and storage, EV infrastructure, sustainable transport, and water and waste management. The second close follows GIP's first close in September 2025, which raised $510 million. New investors joining at the second close include DBS and Cathay United Bank, which entered into senior tranche lending arrangements.

Blended finance structures like GIP use public or philanthropic capital to reduce the perceived risk of climate infrastructure investments, enabling private capital to enter at scale. The FAST-P initiative was specifically designed to address Asia's pressing climate finance gap by bringing together public, private, and philanthropic capital through innovative tiered capital structures. Pentagreen's model uses a junior-senior capital structure to provide risk protection to senior lenders while deploying concessional capital in the higher-risk junior tranche.

India, as one of the key South Asian markets in GIP's target geography, stands to benefit from the fund's deployment of infrastructure debt capital into sectors including renewable energy, EV charging infrastructure, and water and waste management. For Indian sustainable infrastructure developers facing challenges in accessing long-term, competitively priced debt financing, blended finance platforms like Pentagreen's GIP may represent an important source of capital. The second close's success reinforces the viability of blended finance as a tool for mobilising institutional capital into Asia's energy transition at meaningful scale.

Key figure — $800 million committed to Pentagreen's GIP at second close, up from $510 million at first close