Anthropocene Fixed Income Institute and Climate Smart Ventures launch "Transition-Southeast Asia (T-SEA) Partnership" to accelerate coal asset transitions with financing
November 14, 2022
Climate Smart Ventures
The Anthropocene Fixed Income Institute (AFII), a research organization that empowers fixed income investors to drive the climate transition, and Climate Smart Ventures (CSV), an advisory firm based in Singapore focused on corporate energy transition plans that shift coal assets to renewables, are excited to announce their Transition-Southeast Asia (T-SEA) partnership.
T-SEA will develop compelling financing opportunities for corporates with ambitious plans to move to more sustainable operations, with an initial focus on the shift from fossil fuels to renewable energy. Key to this will be to ensure funding is available through transition and sustainable finance structures, such as Sustainability-Linked Bonds (SLBs) and other labelled debt.
T-SEA will proactively engage with and match global investors to potential corporate issuers with credible coal retirement targets that require financing to enable the transition. The partnership will work closely with corporate issuers from across Southeast Asia to design SLB and labelled debt structures that will both meet investor expectations and have the potential to deliver a lower cost of capital to corporates with ambitious and transparent carbon reduction plans.
Justine Leigh-Bell, Executive Director, AFII: “AFII’s market practitioners’ approach combined with CSV’s track record for delivering successful transactions that advance Southeast Asia’s energy transition make this partnership a timely step in addressing the enormous funding gap for corporate decarbonisation in the region.
“To reach global climate targets, financing needs to be made available to carbon-intensive industries to invest in their transition. T-SEA will help to ensure that the debt instruments are designed to deliver a meaningful transition. AFII’s research shows that ambitious SLBs have the potential to deliver a lower cost-of-capital to corporate issuers.”
Lawrence Ang, Managing Partner, CSV: “There is strong appetite in Southeast Asia among many corporates for alternative financing to support their move to clean energy, including active stewardship of their coal and fossil fuel assets towards an accelerated retirement. It is essential that these opportunities are funded and matched by motivated investors with similar goals in terms of sustainability and risk and returns. This is while ensuring workers and affected communities are not left behind by the transition.
“We’re excited about the potential of T-SEA to help create a way forward for companies that are serious about delivering on climate goals.”
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