HSBC, Temasek In Partnership To Tackle Climate Change

HSBC Holdings plc (HSBC) and Temasek today entered into a partnership to establish a debt financing platform dedicated to sustainable infrastructure projects with an initial focus on Southeast Asia, as part of efforts to reduce climate change.

HSBC and Temasek will invest up to a combined US$150 million of equity to fund loans, working alongside the platform’s strategic partners in the initial phase.

Over the longer term, the ambition is to build a pipeline of projects to scale, with the platform dispensing over US$1 billion of loans within 5 years.

The Asian Development Bank (ADB) and Clifford Capital Holdings (CCH) will support the platform as strategic partners.

ADB will provide various forms of assistance to the platform, including technical assistance and project development expertise, while CCH will provide its project finance expertise as well as ongoing operational mid and back-office support to the platform.

Noel Quinn, Group Chief Executive of HSBC, says, “This innovative partnership aims to tackle some of the biggest barriers to financing sustainable infrastructure where it’s needed the most. 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.

For Temasek International’s CEO Dilhan Pillay, the commitment is to explore innovative solutions to address critical infrastructure needs especially in emerging markets in Asia, that will contribute to the transition to net-zero.

“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,” he says.

The platform will also 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. Based in Singapore, it aims to harness the market’s financial expertise and connectivity to scale up the development of sustainable infrastructure across Southeast Asia in time.

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