HSBC and Temasek launch debt financing platform

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SINGAPORE: HSBC Holdings and Singaporean public investor Temasek join forces to set up a debt financing platform for sustainable infrastructure projects, with an initial focus on Southeast Asia.

The two companies said in a joint statement that they will invest a combined amount of up to US $ 150 million (RM 628 million) of equity to fund loans in the initial phase.

The Singapore-based platform aims to allocate more than US $ 1 billion (RM 4.2 billion) in loans over 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 US $ 2 trillion (RM 8.38 trillion) in infrastructure investment is needed over the next decade to enable Southeast Asia’s sustainable transition, a released report said on Wednesday. by Bain & Co, Microsoft and Temasek.

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. “- Reuters


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