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HSBC, Temasek partner to fund sustainable infrastructure projects in Asia

The two hope to dispense over US$1b of loans over the next five years.

HSBC and Temasek have teamed up to establish a debt financing platform to develop sustainable infrastructure projects with an initial focus on Southeast Asia. 

The two will invest up to a combined US$150m of equity to fund loans, working alongside the platform’s other partners, the Asian Development Bank (ADB) and Clifford Capital Holdings (CCH). 

HSBC and Temasek’s platform aims to dispense over US$1b of loans over the next five years in order to build a pipeline of projects to scale.

A meaningful portion of the platform’s loan portfolio will reportedly target marginally bankable, sustainable infrastructure projects, offering project development expertise, technical assistance and finance solutions.  

In particular, the platform seeks to invest in clean transport, renewable energy and energy storage, and water and waste management, according to a separate announcement by the ADB. They are also open to including additional areas, such as climate adaptation, agriculture and land use, and technology-led solutions in the future.

The platform aims to catalyse significant capital flows to the sustainable infrastructure space, deploying blended finance at scale over time to unlock more marginally bankable projects and create a tradable asset class, crowding in private and institutional investors.

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