By Megan Cheah
SINGAPORE--Pentagreen Capital Fund Management's Asia-focused blended finance program has reached $800 million in committed capital.
Petagreen Capital, a sustainable infrastructure debt financing platform, said Wednesday that Singapore lender DBS and Taiwan's Cathay United Bank had joined Pentagreen's Green Investments Partnership. The two will have senior tranche lending arrangements with the program.
A new industry partner joined the junior portion of the program, while a few existing partners increased their participation, said Pentagreen, which was established by lender HSBC and Singapore state investment company Temasek. This round of participants brought the platform's committed capital to $800 million from $510 million in the first round.
The Green Investments Partnership aims to deploy blended debt financing to support capital-constrained sustainable infrastructure projects in Southeast and South Asia, it said.
It comes under a initiative launched by the Singapore central bank to help finance Asia's green transition using capital from the public, philanthropic and private sectors.
Developing economies in Asia will need around $1.7 trillion of infrastructure investments annually until 2030 to meet their development and climate goals, according to the Asian Development Bank.
However, "transition projects have historically struggled to attract commercial financing at scale because of perceived risks associated with such undertakings," said DBS Group Chief Sustainability Officer Kelvin Wong.
Companies are also facing hurdles to reaching their climate goals. Temasek Chief Executive Dilhan Pillay said Monday that the state investment firm is unlikely to meet its interim 2030 target of halving net portfolio emissions from 2010 levels under "current conditions".
Temasek's portfolio is also exposed to "hard-to-abate sectors" such as aviation and power generation, where the technology needed to drive decarbonization still isn't commercially scaled or economically viable, he said in a speech.
While the green transition is still urgent amid intensifying climate risks, he expects it to be "far more uneven, contested and nonlinear than previously anticipated."
Write to Megan Cheah at megan.cheah@wsj.com
(END) Dow Jones Newswires
May 20, 2026 00:39 ET (04:39 GMT)
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