The Monetary Authority of Singapore (MAS), Clifford Capital and the Private Infrastructure Development Group (PIDG) have announced that the Energy Transition Acceleration Finance partnership (ETAF) achieved its first close with US$250 million in committed capital for its displacement strategy.
The ETAF is a blended finance fund under Singapore's Financing Asia's Transition Partnership (FAST-P) initiative. ETAF adopts a displacement strategy, which supports investments in grid modernisation and other energy transition infrastructure projects to accelerate the displacement of fossil fuel-based power generation; and a replacement strategy focusing on replacing coal-fired power generation with lower-emissions power sources.
MAS and PIDG are ETAF’s first close catalytic capital providers. Temasek is also expected to contribute catalytic capital from its Concessional Capital for Climate Action, funded by Temasek’s community gifts, subject to definitive agreements.
DBS Bank is participating as a senior lender to ETAF.
GuarantCo, part of PIDG, has provided a guarantee for ETAF's mezzanine financing structure, to enhance its risk-return profile and crowd in additional commercial investment.
Clifford Capital Asset Management, Clifford Capital’s wholly owned asset manager, will act as the fund manager for ETAF.
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The Singapore government has pledged up to US$500 million in concessional capital under FAST-P, with the aim of catalysing up to US$5 billion in investments to support Asia's green transition.
DBS says it is providing a US$210 million senior financing facility to ETAFCo under Singapore’s FAST-P initiative. The financing marks the first loan extended to ETAFCo, with DBS as the fund’s inaugural senior debt financier.
The loan will support eligible energy transition infrastructure debt investments, including renewable energy, grid modernisation, energy storage and other clean energy solutions that reduce reliance on, and utilisation of coal-fired power generation.
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Earlier, DBS had also contributed US$75 million to FAST-P’s flagship blended finance programme Green Investments Partnership managed by Pentagreen Capital, serving as the lead coordinator for its senior tranche. With the transaction, DBS becomes the only commercial bank to support two partnerships within the FAST-P initiative.
Han Kwee Juan, group head of institutional banking, DBS, says: “We believe that sustainability is not a parallel agenda but a core driver of long-term value. When approached pragmatically, it strengthens economic competitiveness, improves lives and builds resilience for the future. DBS is pleased to be the first commercial bank to support the Energy Transition Acceleration Finance partnership – a blended finance initiative uniquely designed to catalyse capital and lower the risk of financing Asia’s energy transition – underscoring our commitment towards a sustainable future.”
Gillian Tan, assistant managing director (development and international) of MAS, says: “ETAF’s successful first close demonstrates FAST-P’s growing momentum and traction. Through innovative blended finance models and guarantee mechanisms, FAST-P is bringing a broader coalition of partners together to meet Asia’s transition financing needs.”
