HSBC, Temasek launch debt financing platform

HSBC Holdings and Singapore state investor Temasek teamed up to set up a debt financing platform. This is for sustainable infrastructure projects, with an initial focus on Southeast Asia. The two companies stated in a joint statement that they would invest a combined amount of $150 million. This is for funding the loans. This Singapore-based base is aiming to allocate more than $1 billion of loans. And that too within five years.

The company said that the platform will target renewable energy and storage, water and waste treatment and sustainable transport. This is for carbon reduction and to build resilience. Noel Quinn, group chief executive of HSBC, said that the partnership is aiming to tackle some of the biggest barriers. This is to finance the sustainable infrastructure where ever it is needed. All the governments, companies and investors over the world are taking steps for developing the climate finance plans. This is for funding the transition to a low-carbon economy.

For infrastructure investment, $2 BLN is needed over the next decade. This is for enabling the Southeast Asia’s sustainable transition, as per a report issued by Bain & Company. HSBC and Temasek said that the Asian Development Bank would offer technical assistance. Clifford Capital Holdings is a Singapore-based specialist financing and distribution platform for infrastructure assets. And they would assist with project finance expertise. Dilhan Pillay, CEO of Temasek International said that the public funding alone will not cover the scale of climate change mitigation and transition, that is required across Southeast Asia. By joining forces, they can catalyse their capital, multiplying impact and scaling to meet the opportunities.