[Updated] SG government-backed energy transition initiative ETAF secures first close

The Energy Transition Acceleration Finance (ETAF) partnership has achieved its first close of $250 million in committed capital, from the Monetary Authority of Singapore (MAS), and the Private Infrastructure Development Group (PIDG).

Singapore state investor Temasek is also expected to contribute catalytic capital.

At the same time, ETAF  has also secured its first loan, with a $210-million senior facility to its investment vehicle ETAFCo from Singapore-headquartered bank DBS.

GuarantCo, part of PIDG, has also provided a guarantee for ETAF’s mezzanine financing structure.

ETAF, managed by Clifford Capital, was established under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, to mobilise concessional and commercial capital to drive the deployment of clean energy and energy transition projects across Asia.

This includes managing the phasing out of fossil fuel power generation, renewable energy, grid modernisation, energy storage, and other clean energy solutions.

The Singapore government has pledged up to $500 million in concessional capital under FAST-P, with the aim of catalysing up to $5 billion in investments.

The DBS loan facility is earmarked for infrastructure debt investments that support the region’s energy transition, in particular the reduction of reliance on coal as a source of power generation.

The first phase will focus on investments in clean energy transition and grid infrastructure projects. 

Separately, DBS has also contributed $75 million to FAST-P’s blended finance programme Green Investments Partnership (GIP), managed by Pentagreen Capital. 

GIP directs blended debt financing to support sustainable infrastructure projects in South and Southeast Asia.

Last month, Pentagreen Capital announced that GIP has secured its second close, with $800 million in commitments from capital providers including Cathay United Bank and DBS as senior tranche lending partners. 

In a statement, Pentagreen Capital added that “a new industry partner” had joined the junior portion of the programme.