Pentagreen Capital Fund Management has announced the second close of the Green Investments Partnership (GIP), a flagship blended finance programme under Singapore’s Financing Asia’s Transition Partnership (FAST-P), bringing the committed capital from $510 million to $800 million.
Pentagreen Capital is the sustainable infrastructure debt financing platform established by HSBC and Temasek.
As one of the largest privately managed Asia-focused blended finance programmes, GIP is the first platform under the FAST-P initiative to reach closing, according to an announcement.
The latest partners joining GIP in the second close include DBS and Cathay United Bank. Several existing partners have also increased their participation at the second close.
Launched by the Monetary Authority of Singapore (MAS), FAST-P brings together public, private, and philanthropic capital to help finance Asia’s green transition. Under FAST-P, the GIP programme seeks to deploy blended debt financing to support capital-constrained sustainable infrastructure projects in Southeast and South Asia.
GIP will support projects critical to the Asia’s energy transition, serving to strengthen the region’s economic resilience, energy security and connectivity, and enhancing Singapore’s strategic position as a regional sustainable finance hub.
Developing economies in Asia require an estimated $1.7 trillion of infrastructure investments annually until 2030 to meet their development and climate goals. The GIP was conceived to address the region’s pressing climate finance gap by using an innovative blended and tiered capital structure to crowd in capital at scale.
By de-risking infrastructure investments in Southeast and South Asia for international participants, GIP aims to unlock capital for innovative and capital-intensive infrastructure situations.
“The second close of the Green Investments Partnership reflects the strong momentum it has achieved since launch. The growing number of partners demonstrates increasingly widespread recognition of the critical importance of blended finance to mobilising the funding required for Asia’s energy transition, to deliver stronger economic resilience and common prosperity in the region,” said Marat Zapparov, Chief Executive Officer of Pentagreen Capital.
“Pentagreen Capital has played an important role in developing and implementing GIP, and FAST-P appreciates the commitment of both existing and new partners who have chosen to participate in GIP. Their collective support underscores the role that well-structured vehicles can play in mobilising capital for Asia’s green and sustainable infrastructure and advancing the region’s broader transition objectives,” said Munib Madni, CEO of the FAST-P office.
Kelvin Wong, Chief Sustainability Officer at DBS Bank, said transition projects in Asia have struggled to secure large-scale financing due to perceived risks, adding that the FAST-P initiative and the Green Investment Partnership aim to mobilise private capital and expand the pipeline of bankable low-carbon projects.
Michael Wen, Executive Vice President at Cathay United Bank, said the lender’s participation in the second close of GIP reflects its focus on sustainable finance and regional expansion while supporting cross-border cooperation in Asia-Pacific sustainable finance initiatives.
Headquartered in Singapore, Pentagreen Capital is a sustainable infrastructure debt financing platform established by HSBC and Temasek focused on financing sustainable infrastructure projects across Asia. The company aims to support infrastructure financing needs in the region and facilitate investment opportunities in the sector.
