Sustainable infrastructure debt financing company Pentagreen Capital, which is backed by HSBC and Singapore state fund Temasek, has opened its doors in Singapore with the stated goal of accelerating the development of sustainable infrastructure in Asia by removing the barriers that can prevent marginally bankable projects from accessing capital.
The company will seek to achieve this through a combination of technical assistance and blended finance to catalyze other sources of capital, with support from its strategic partners.
Geographically, the company will initially target opportunities in Southeast Asia, and its primary focus will be on clean transport, renewable energy and energy storage, and water and waste management. In the future, transactions in areas like climate adaptation, agriculture and land use, and technology-led solutions, and in other geographies, will be considered.
The company’s strategic partners include the Asian Development Bank, which provides origination and technical support through its presence in countries throughout the region, and Singapore’s Clifford Capital Holdings, which has a strong focus on sustainable long-term financing solutions and is uniquely positioned to provide project finance expertise and operational support.
With a combined US$150 million of equity committed by HSBC and Temasek, Pentagreen aims to deploy blended finance at scale over time and make over US$1 billion of loans within five years.
Marat Zapparov is the company’s chief executive officer. He brings close to two decades of experience to the company, including over 15 years in infrastructure, energy and real assets financing, during which time he worked with the International Finance Corporation, Clifford Capital and HSBC.
Zapparov says: “We aim to fill the gap between traditional financing options from banks and development financiers and catalyze the flow of capital to innovative projects by bringing flexible debt financing solutions to the table.”