Pentagreen Capital Fund Management Pte. Ltd. has announced the second close of the Green Investments Partnership (GIP), expanding the fund’s total capital commitments from US$510 million to US$800 million. Pentagreen Capital is the debt financing joint venture established by HSBC and Temasek to fund sustainable infrastructure.
The GIP functions as a primary blended finance programme under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. This milestone marks the first platform under the multi-billion-dollar FAST-P framework to reach its second closing, establishing it as one of the largest privately managed, Asia-focused blended finance mechanisms in operation.
The architecture of a blended finance vehicle uses concessionary or junior capital to de-risk investments, allowing commercial lenders to participate in projects that would otherwise fall outside their standard risk tolerance.
The second close introduces regional commercial banks DBS and Cathay United Bank as new senior tranche lending partners. Concurrently, an undisclosed new industry partner has joined the junior equity portion of the programme, while several founding institutional investors have expanded their baseline commitments.
The capital pool is earmarked for non-bankable or marginally bankable green infrastructure projects across Asia, focusing on renewable energy deployment, grid modernization, and sustainable transport solutions that are critical to the regional net-zero transition.
“The second close of the Green Investments Partnership reflects the strong momentum it has achieved since launch,” said Marat Zapparov, Chief Executive Officer of Pentagreen Capital. “The growing number of partners demonstrates increasingly widespread recognition of the critical importance of blended finance to mobilising the funding required for Asia’s energy transition, to deliver stronger economic resilience and common prosperity in the region.”
Munib Madni, CEO of the FAST-P office, added that the vehicle’s success serves as a blueprint for regional capital mobilization. “Their collective support underscores the role that well-structured vehicles can play in mobilising capital for Asia’s green and sustainable infrastructure and advancing the region’s broader transition objectives,” Madni stated.
The inclusion of major commercial banking institutions signifies a shift toward structured public-private partnerships within Asian capital markets. DBS will act as the lead coordinator for the senior debt tranche.
“Transition projects have historically struggled to attract commercial financing at scale because of perceived risks associated with such undertakings,” noted Kelvin Wong, Chief Sustainability Officer at DBS. “By stepping in as lead coordinator of the senior tranche for the Green Investment Partnership, DBS is honoured to be one of the first commercial banks supporting this effort to help de-risk and scale the availability of bankable projects.”
Michael Wen, Executive Vice President at Cathay United Bank, highlighted the regional significance of the transaction for international lenders. “We are pleased to work with the Monetary Authority of Singapore, Temasek and HSBC on the second close of GIP, marking Cathay United Bank’s participation in this important blended finance platform as the inaugural Taiwanese bank,” Wen said, adding that the partnership advances the bank’s broader expansion goals across the Asia-Pacific.
