HSBC and Temasek revealed that they’ve formed a partnership in order to launch a $150 million debt financing platform that’s aimed at supporting sustainable infrastructure initiatives with a special focus on Southeast Asia. This project is reportedly a part of efforts to address climate change issues.
HSBC (NYSE: HSBC) and Temasek stated that they plan to establish a pipeline of initiatives in order to scale, with the platform providing more than $1 billion of loans within the next five years.
A significant part of the platform’s overall loan portfolio will aim to focus on marginally bankable, sustainable infrastructure initiatives, offering project development expertise, technical assistance and blended finance services where they may be required.
The Asian Development Bank (ADB) and Clifford Capital Holdings (CCH) will reportedly be supporting the platform as partners.
ADB will offer different forms of assistance to the platform, which will include technical assistance and project development expertise, meanwhile, CCH will be offering its project finance expertise and operational mid and back office support.
The platform will be applying globally-recognized ESG industry best practices and will be assessing sustainability outcomes via the loans offered. It will also be focusing on renewable energy and storage, water and waste treatment and sustainable transport in order to assist with meeting carbon reduction targets and build resilience to offset the overall impact of climate change.
Noel Quinn, Group Chief Executive at HSBC, stated:
“Neither private nor public sector can close the financing gap alone – but by working with Temasek, the Asian Development Bank and Clifford Capital, we can deploy significant amounts of blended finance for projects in Southeast Asia that would otherwise go unfunded. Collaborations matter in the fight against climate change, and this partnership provides an impactful model for others to follow.”
Dilhan Pillay, CEO at Temasek International, remarked:
“Public funding alone will not cover the scale of climate change mitigation and transition required across Southeast Asia. By joining forces, we can catalyse our capital, multiplying impact and scaling to meet the opportunities. Partnerships like this demonstrate Temasek’s commitment to a spectrum of sustainable solutions, and highlight the urgency of action required to get us all to net zero.”