Singapore Raises $510 Million for Green Infrastructure Blended Finance Fund in Asia
The Monetary Authority of Singapore has announced the first close of the Green Investments Partnership at $510 million, targeting green and sustainable infrastructure investments in Southeast and South Asia through a blended finance structure combining public, concessional, and private capital. Investors include the IFC, HSBC, Temasek, and the Australian, Dutch, UK, and EU development finance institutions.
GIP forms part of Singapore's Financing Asia's Transition Partnership, a blended finance initiative launched in 2023 to mobilise public, private, and philanthropic capital for Asia's green transition. The fund will deploy debt financing for climate-related, marginally bankable sustainable infrastructure, including renewable energy and storage, electric vehicle infrastructure, sustainable transport, water and waste management, and energy transition-related sectors. GIP will be managed by Pentagreen Capital, a Singapore-based sustainable infrastructure debt platform launched in 2022 by HSBC and Temasek.
The blended finance structure is designed to de-risk investments that would not otherwise attract commercial capital, using concessional and public-sector funding in junior tranches to improve the risk-return profile for private investors in senior tranches. The European Commission is supporting GIP under its Global Gateway programme, while the Australian Government is participating through Export Finance Australia, reflecting broad international backing for the initiative. The first close includes a diverse group of partners across different tranches of the capital structure.
South Asia, including India, falls within GIP's investment geography, making the fund a potential source of structured debt financing for clean infrastructure projects in India that face commercial bankability constraints. India's renewable energy, EV infrastructure, and clean transport sectors are among the target investment areas that align with GIP's mandate. As India seeks to mobilise the estimated $2.5 trillion in climate finance needed through 2030, innovative blended finance structures of the GIP type represent an important complement to domestic capital markets.
Key figure — $510 million raised at first close for the Green Investments Partnership
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