HSBC Extends Green Loan Facility to Circulate Capital for South Asian Investments

Singapore-based investment manager Circulate Capital has secured a revolving green loan facility from HSBC to support its ability to deploy capital rapidly into circular economy investments across South and Southeast Asia. The facility follows the first close of Circulate Capital Asia II, which raised $220 million for investments in circular supply chains and recycling businesses across six countries.

Circulate Capital Asia II targets investments in India, Indonesia, Thailand, Vietnam, the Philippines and Malaysia, focusing on scaling plastic circularity and circular supply chain solutions. The new HSBC green loan facility provides the fund with a flexible liquidity source that can be drawn on quickly when investment opportunities arise, enabling the firm to act with increased agility. The facility is designed to scale in size as the fund grows and can be extended in duration as required, making it an adaptable financing tool for a multi-year investment programme.

Founded in 2018, Circulate Capital was established with an initial focus on addressing the ocean plastic crisis in South and Southeast Asia before broadening its mandate to plastic circularity and disruptive circular economy innovations globally. South and Southeast Asia generate a disproportionate share of global plastic waste due to inadequate waste management infrastructure, making the region a priority for circular economy investment. India in particular presents significant opportunities, given its large informal recycling sector and growing regulatory pressure on extended producer responsibility for plastics.

HSBC's involvement reflects the growing role of commercial banks in financing sustainability-focused investment managers, particularly in markets where the green finance infrastructure is still developing. Gilbert Ng, Head of Banking at HSBC Singapore, noted that funding remains a barrier for many sustainability initiatives in the region and that banks have a key role in unlocking capital for real-economy impact. The partnership is expected to accelerate deal execution for Circulate Capital as it deploys the Asia II fund across its six target markets over the coming years.

Key figure — $220 million raised in the first close of Circulate Capital Asia II