In recent years, increasing awareness of the climate crisis and net-zero carbon emissions targets set by national governments has built strong momentum for increased investment in climate action and mitigation projects. Blended finance, in particular, has emerged as a useful mechanism to encourage investment in infrastructure projects in developing nations, as it combines public funding, such as by development finance institutions (DFIs) or multilateral development banks (MDBs), with private financing to finance marginally bankable projects. In Southeast Asia, blended finance research network Convergence has reported that 107 transactions were recorded in the region amounting to a total value of US$20.7 billion in 2022. In Singapore, the government launched its flagship blended finance initiative Financing Asia's Transition Partnership (FAST-P) in December 2023, with leading local bank DBS Bank Ltd. recently announcing in May 2024 its provision of a blended finance loan to support the construction of a S$285.8 million water plant system in Indonesia, in what is expected to be a country-first type of blended financing.
This update highlights developments in the blended finance space.
If you would like information and/or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or the following Partner:
Bernadette TAN
Partner – Banking & Finance
d +65 6517 8718
e bernadette.tan@wongpartnership.com
Click here to view Bernadette’s CV.