DBS lends $273m to ETAFCo amidst push to cut Asia's coal reliance

The loan will fund grid upgrades, battery storage, and renewable assets.

DBS will provide about $273m (US$210m) in a senior financing facility to ETAFCo, becoming the first commercial bank to support two partnerships under Singapore's Financing Asia's Transition Partnership (FAST-P) initiative.

The loan marks the first debt financing extended to ETAFCo, the investment vehicle supporting the displacement strategy of the Energy Transition Acceleration Finance (ETAF) partnership managed by Clifford Capital.

DBS said in a statement that the financing will support debt investments in renewable energy, grid modernisation, energy storage, and other clean energy projects aimed at reducing reliance on coal-fired power generation across Asia.

The deal follows DBS' earlier commitment of approximately $97.5m (US$75m) to FAST-P's Green Investments Partnership programme, managed by Pentagreen Capital, where the bank served as lead coordinator for the senior tranche.

"DBS is pleased to be the first commercial bank to support the Energy Transition Acceleration Finance partnership," said Han Kwee Juan, Group Head of Institutional Banking at DBS.

Launched by the Monetary Authority of Singapore, FAST-P uses blended finance structures to mobilise public, private, and philanthropic capital for green and transition investments across Asia.

Lily Choh, Group Head of Asset Management at Clifford Capital, said DBS' participation "strengthens ETAF's ability to mobilise capital for energy transition infrastructure."

(US$1 = SG$1.30)