HSBC, Temasek launch debt financing platform for sustainable infrastructure

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SINGAPORE, Sep 30 (Businesshala) – HSBC Holdings and Singapore state investor Temasek are working together to establish a debt financing platform for sustainable infrastructure projects with an initial focus on Southeast Asia.

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The two companies said in a joint statement on Thursday that they would invest a combined amount of up to $150 million in the initial phase of the loan. The Singapore-based platform aims to allocate more than $1 billion in loans within five years.

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“The platform will target renewable energy and storage, water and wastewater treatment and sustainable transportation to help meet carbon reduction goals and build resilience to address the impact of climate change,” the companies said.

HSBC’s group chief executive Noel Quinn said the partnership aims to “address some of the biggest barriers to sustainable infrastructure funding where it is most needed.”

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Globally, governments, companies and investors are taking steps to develop climate finance plans to finance the transition to a low-carbon economy.

About $2 trillion in infrastructure investment is needed over the next decade to enable a sustainable transition to Southeast Asia, a report released Wednesday by Bain & Company, Microsoft and Temasek said.

HSBC and Temasek said the Asian Development Bank will provide technical and other support to the platform, while Clifford Capital Holdings, a Singapore-based specialist financing and distribution platform for infrastructure assets, will assist with project finance expertise.

“Public funding alone will not cover the scale of climate change mitigation and transition across Southeast Asia,” said Dilhan Pillay, CEO of Temasek International. “By joining forces, we can catalyze our capital, increasing impact and scaling to meet opportunities.” (Reporting by Anshuman Daga; Editing by Edmund Blair)

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