SINGAPORE (Reuters) – HSBC Holdings and Singaporean state investor Temasek are teaming up to set up a debt financing platform for sustainable infrastructure projects, initially focusing on Southeast Asia.
The two companies said in a joint statement Thursday that they would invest a combined amount of up to $ 150 million in equity to fund loans in the initial phase. The Singapore-based platform aims to allocate more than $ 1 billion in loans within five years.
“The platform will target renewable energy and storage, water and waste treatment and sustainable transport to help meet carbon reduction targets and build resilience to offset the impact of climate change,” the companies said.
Noel Quinn, Managing Director of HSBC Group, said the partnership “aims to tackle some of the biggest obstacles to financing sustainable infrastructure where it is needed most.”
Globally, governments, businesses and investors are taking action to develop climate finance plans to finance the transition to a low-carbon economy.
Some $ 2 trillion in infrastructure investment is needed over the next decade to enable Southeast Asia’s sustainable transition, a report released by Bain & Company, Microsoft and Temasek said Wednesday.
HSBC and Temasek said the Asian Development Bank will provide technical and other assistance to the platform, while Clifford Capital Holdings, a Singapore-based specialist financing and distribution platform for infrastructure assets , would bring its expertise in project financing.
“Public funding alone will not cover the scale of climate change mitigation and transition required across Southeast Asia,” said Dilhan Pillay, CEO of Temasek International. “By joining forces, we can catalyze our capital, multiply impact and evolve to seize opportunities.”
(Reporting by Anshuman Daga; Editing by Edmund Blair)