Pentagreen to manage $1B Asia green infrastructure fund

The Facts -

Pentagreen Advances Green Infrastructure Finance in Asia

Baku, November 12, 2024 – Pentagreen Capital, founded by HSBC and Temasek, has made strides in the Green Investments partnership. This innovative blended finance program aims to address climate finance gaps and boost bankability of sustainable infrastructure in Asia. The announcement follows collaboration at COP28 with MAS, Temasek, Allied Climate Partners, and IFC to develop bankable climate projects in Asia.

The partnership will deploy US$1 billion under the Financing Asia's Transition Partnership (FAST-P), aiming to mobilize up to US$5 billion for Southeast Asia's energy transition and green projects.

Developing Asia requires US$1.7 trillion annually in infrastructure investments by 2030. Many sustainable projects face financial challenges, especially in development and construction phases. Blended finance is key to unlocking capital flow to these projects.

The partnership targets gaps in Southeast Asia's sustainable infrastructure financing using blended finance, attracting commercial and philanthropic capital.

Funds will support sectors such as renewable energy, EV infrastructure, sustainable transport, and waste management, increasing bankable opportunities over time.

HSBC and Temasek, key Pentagreen shareholders, will continue their financial support. The Singapore Government will match contributions from catalytic partners like ACP, while IFC explores financing opportunities to attract additional capital. Capital deployment is expected in 2025.

Marat Zapparov, CEO of Pentagreen Capital, stated: “We are honored to progress the Green Investments partnership. Blended finance is crucial to filling Asia's infrastructure funding gaps. Our diverse partners reflect an international commitment to bridge climate finance challenges in Asia.”

Connie Chan, Head of Financial Services at Temasek, remarked: “Developing Asia needs robust financing for green infrastructure aligned with decarbonization goals. Through the Green Investment program, we aim to attract partners to bridge the risk-reward disconnect in these projects and unlock financial flows to accelerate Asia's transition.”

Greg Guyett, CEO of Global Banking and Markets at HSBC, emphasized: “The Green Investments partnership offers a new model to support low carbon economy transitions. Blended finance makes financing accessible, enabling wider participation from transition innovators.”

Leong Sing Chiong, Deputy Managing Director of MAS, commented: “Pentagreen's progress with its partners on the Green Investments initiative using blended finance is a significant move towards mobilizing finance for Asia's transition.”

Ahmed Saeed, CEO of ACP, noted: “Significant climate finance flows to emerging economies are essential for net zero paths. Bold partnerships like Pentagreen's leverage public, private, and philanthropic sectors effectively.”

Riccardo Puliti, IFC’s Regional Vice President for Asia Pacific, said: “Green Investments will boost finance access for sustainable projects, driving growth and job creation in Asia’s emerging economies.”

Srini Nagarajan, MD at BII, endorsed: “BII collaborates with Pentagreen to develop this innovative finance program to address Asia's climate finance gaps.”

Peteris Ustubs, Director at EC’s Directorate-General for International Partnerships, expressed: "The European Commission supports the Green Investments partnership under FAST-P, aligning with the Global Gateway strategy for sustainable infrastructure."

Monika Beck, Member of the DEG Management Board, mentioned: “Renewable energy investments are key in DEG’s strategy. Initiatives like Pentagreen offer opportunities for impactful climate projects.”

Huib-Jan de Ruijter, FMO Co-Chief Investment Officer, added: "FMO’s collaboration with Pentagreen will mobilize resources for impactful projects that tackle Asia’s climate finance gap." Learn more about Pentagreen Capital.

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