The Monetary Authority of Singapore ( MAS ) has announced that the Green Investments Partnership ( GIP ), a blended finance partnership under Singapore’s Financing Asia’s Transition Partnership ( FAST-P ) initiative, achieved its first close with US$510 million of committed capital from global and regional private, public and philanthropic institutions.

This capital will be directed towards sustainable infrastructure projects in Southeast and South Asia, targeting the region’s most pressing energy transition needs.

This fund brings together a diverse group of public, private and philanthropic investors. Key backers include the MAS itself, the Australian Government via Export Finance Australia, International Finance Corporation, FMO, HSBC, Temasek, British International Investment, Bank of the Philippine Islands and Allied Climate Partners. The European Commission has also joined as a supporter under its Global Gateway programme.

Fund management will be led by Pentagreen Capital, a debt financing platform co-founded by HSBC and Temasek. GIP will deploy financing across sectors critical to the net-zero transition, including renewable energy and storage, electric vehicle infrastructure, sustainable transport, and water and waste management.

GIP is the first fund under FAST-P to reach first close. The structure is designed to expedite institutional and private capital through a blended finance model, combining concessional and commercial tranches to de-risk otherwise marginally bankable infrastructure opportunities.

The first close, says Gillian Tan, the MAS’ chief sustainability officer, represents “an important milestone”, adding that “this is a critical step forward in demonstrating how blended finance can work to unlock capital for green infrastructure.” She also praised Pentagreen’s ability to mobilize a wide range of partners.

FAST-P was launched in 2023 to confront precisely these bottlenecks, and GIP’s successful close signals growing investor confidence in structured climate finance for emerging Asia.

“We’re building a new architecture for sustainable infrastructure finance in Asia,” points out Munib Madni, FAST-P Office’s CEO, “one that’s inclusive, resilient and scalable.”

The initiative is particularly timely as Asia continues to grapple with one of the world’s widest climate finance gaps. Many high-impact projects in the region remain unfunded due to early-stage development risk, construction uncertainty and lack of credit enhancement.