Project detail - Green Investment Master Fund PTE. LTD.

Who is our prospective customer?

Green Investments Partnership (“GIP”) is a closed-ended debt fund of up to USD 1 billion to be managed by Pentagreen Capital Fund Management Pte. Ltd., a 50%-50% venture of HSBC and Temasek. GIP is one of the blended finance programs under Financing Asia’s Transition Partnership (“FAST-P”) launched by the Monetary Authority of Singapore (“MAS”) to address climate finance gaps in emerging Asia.

What is our funding objective?

GIP will provide a mix of medium- and long-term financing through senior secured, unsecured, mezzanine, and subordinated debt instruments in high-impact sectors, primarily energy utility and storage, C&I, e-mobility, waste, water, and data centers. The Fund will target transactions in Southeast Asia and South Asia, with key markets to include Indonesia, the Philippines, Thailand, Malaysia, and Vietnam.

Why do we want to fund this investment?

The capital flows into Asia's green economy are constrained by various factors, especially higher perceived risks in emerging markets, insufficient return for such risks, and the complex, fragmented ecosystem with many smaller projects. These factors pose a challenge to attracting the required climate finance debt volumes. The Fund's strategy is to provide a blended finance platform to finance marginally bankable green infrastructure projects in emerging Asia and catalyze capital flow to parts of the market where it is most needed and lacking. FMO's role as an anchor investor in the Fund's first closing will contribute to the mobilization of private capital.

What is the Environmental and Social categorization rationale?

This transaction is labeled as Environmental & Social (E&S) risk category A, as the Fund is open to considering some potentially E&S category A investments, such as hydropower and solid waste management. A fair portion of the pipeline projects, which include sectors like wind, PV solar, electrical generation, and wastewater, could be considered category B+. As the precise location and scale of the potential customers to be financed by GIP are not yet known, potentially all IFC Performance Standards are applicable. The fund manager will be required to develop a full-fledged Environmental and Social Management System and assign qualified staff to ensure that all GIP investments comply fully with FMO’s E&S standards.