Monetary Authority of Singapore and partners announce first close of ETAF displacement strategy with USD 250 million committed capital

The Monetary Authority of Singapore, Clifford Capital and the Private Infrastructure Development Group announced that the Energy Transition Acceleration Finance partnership has reached its first close with USD 250 million in committed capital for its displacement strategy. ETAF is a blended finance fund under Singapore's Financing Asia's Transition Partnership initiative and, for this strategy, will support grid modernisation and other energy transition infrastructure projects that accelerate the displacement of fossil fuel-based power generation. The broader ETAF platform also includes a replacement strategy focused on replacing coal-fired power generation with lower-emissions power sources. The fund uses blended finance and risk-sharing mechanisms to target earlier-stage or higher-risk transition infrastructure investments where financing is not available at sufficient scale, tenor or risk appetite. MAS and PIDG are the first-close catalytic capital providers. DBS Bank is participating as a senior lender, while GuarantCo, part of PIDG, has provided a guarantee for ETAF's mezzanine financing structure. Clifford Capital Asset Management will manage the fund. Temasek is expected to provide additional catalytic capital from its Concessional Capital for Climate Action, subject to definitive agreements. ETAF sits within the wider FAST-P platform, under which the Singapore government has pledged up to USD 500 million in concessional capital with the aim of catalysing up to USD 5 billion in investments for Asia's green transition.