Singapore's ETAF secures $325m in first close to drive Asia's energy transition

FAST-P will fund grid modernisation and higher-risk energy projects.

Singapore's Energy Transition Acceleration Finance (ETAF) partnership has secured about $325m (US$250m) in committed capital at its first close for its displacement strategy.

This marks the initial capital raise for ETAF, a blended finance fund under Singapore's Financing Asia's Transition Partnership (FAST-P) initiative, according to a joint statement.

ETAF will support investments in grid modernisation and other energy transition infrastructure projects aimed at displacing fossil fuel-based power generation in Asia.

The fund uses blended finance and risk-sharing mechanisms to channel capital into earlier-stage or higher-risk energy transition infrastructure projects that face financing constraints.

The Monetary Authority of Singapore (MAS) and the Private Infrastructure Development Group (PIDG) provided catalytic capital for the first close.

Temasek is also expected to contribute catalytic capital through its Concessional Capital for Climate Action programme, subject to definitive agreements.

DBS Bank is participating as a senior lender to ETAF, whilst GuarantCo, part of PIDG, has provided a guarantee for the fund's mezzanine financing structure.

Clifford Capital Asset Management, a wholly owned subsidiary of Clifford Capital, will manage the fund.

"ETAF's successful first close demonstrates FAST-P's growing momentum and traction," said Gillian Tan, Assistant Managing Director for Development and International at MAS.

Murli Maiya, CEO of Clifford Capital, said ETAF's blended finance structure aims to mobilise capital for projects that accelerate the displacement of fossil fuel-based generation.

(US$1 = SG$1.30)