The Private Infrastructure Development Group (PIDG), the Monetary Authority of Singapore (MAS), and Clifford Capital achieved its first close with USD 250 million in committed capital for its displacement strategy for the Energy Transition Accelerator Financing Platform (ETAF). The ETAF is a blended finance fund under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative.

Through blended finance and risk-sharing mechanisms, ETAF seeks to mobilise capital into earlier-stage or higher-risk energy transition infrastructure investments where financing is not otherwise available at a sufficient scale, tenor, or risk appetite.

As these investments mature and their risk profiles improve over time, ETAF aims to crowd in a broader pool of commercial and institutional investors.

MAS and PIDG are ETAF’s first close catalytic capital providers, with PIDG investing up to USD 15 million. 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 USD 30 million 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.

Through this landmark transaction, PIDG demonstrates how targeted investment in a fund structure can unlock multiples of commercial capital mobilisation into investment areas – a model replicable at scale.

To address different transition pathways in Asia, ETAF adopts (i) 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 (ii) a replacement strategy focusing on replacing coal-fired power generation with lower-emissions power sources.

Mobilising capital at scale requires not just innovative structuring but creating shared best in class approaches – enabled by PIDG providing impact services to the ETAF manager in this transaction.

Through PIDG’s participation, ETAF is expected to mobilise up to USD 420 million of private capital demonstrating how the structure can unlock multiples of commercial investment for Asia’s energy transition.