The Monetary Authority of Singapore (MAS) says the Green Investments Partnership (GIP) fund, part of its Financing Asia’s Transition Partnership (FAST-P) initiative, has achieved a first close with US$510 million in committed capital.

The fund will back green and sustainable infrastructure projects in Southeast and South Asia, targeting areas such as renewable energy, electric vehicle charging, sustainable transport and waste management, MAS says.

The capital comes from a broad coalition of global and regional investors spanning public, private and philanthropic institutions. Contributors include MAS, the Australian government via Export Finance Australia, International Finance Corporation, Dutch Entrepreneurial Development Bank (FMO), HSBC, Temasek, British International Investment, Bank of the Philippine Islands and Allied Climate Partners.

The European Commission is supporting the initiative through its Global Gateway programme.

Pentagreen Capital, a debt financing platform set up by HSBC and Temasek will manage the fund.

Launched in 2023, FAST-P aims to mobilise blended finance at a scale to close Asia’s climate funding gap. The initiative combines concessional and commercial capital across multiple tiers, using innovative structures to de-risk investments for international financiers.

“Pentagreen has brought together a diverse group of partners, participating across both commercial and concessional tranches, to de-risk and finance marginally bankable green infrastructure projects in the region,” says Gillian Tan, assistant managing director and chief sustainability officer at MAS.