Clifford Chance has advised Clifford Capital Asset Management on the establishment of the Energy Transition Acceleration Finance partnership (ETAF), a blended finance platform designed to mobilise institutional capital into infrastructure and energy transition assets.
ETAF has secured $US345 million in aggregate commitments, building on its US$250 million first close, which included initial investments from the Monetary Authority of Singapore, through Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative, and the Private Infrastructure Development Group, with DBS serving as the inaugural senior debt financier. 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.
The fund features a complex, multi-layered capital structure comprising senior, mezzanine and junior tranches, designed to accommodate the requirements of both concessional and commercial investors. Clifford Chance advised on the governance and operational framework at both the fund and underlying platform levels.
Kai-Niklas Schneider, Partner, said: “We’re pleased to have advised Clifford Capital on this transaction, which is notable as one of the first fund platforms established under Singapore’s FAST-P initiative. The blended finance structure brings together catalytic capital from the Monetary Authority of Singapore and PIDG with commercial investment, creating a framework to support deployment into earlier-stage and higher-risk energy transition assets.”
Francis Edwards, Partner, and Greater China Head of Structured Finance and Derivatives, said: “ETAF required close coordination across our funds, structured finance and tax teams, to help deliver a sophisticated capital structure capable of accommodating the requirements of different investor groups. Initiatives like this are likely to play an important role in addressing funding gaps across the energy transition space.”
Partners Kai-Niklas Schneider and Francis Edwards led the multidisciplinary, cross-border team, advising on the funds, tax and structured financing aspects of the transaction. They were supported by partners Chin Seng Chew and Richard Kalaher, senior associates Nicholas Henneberry, Hui Qi Lim, Zong Han Low, Violet Marcel and Jonas Vogelberg, associates Zena Anane, Phone Myat Thu and Anjia Zhou, and trainee associates Ben Ng and Lia Tay.
This transaction builds on Clifford Chance’s track record advising on complex investment platforms and capital structures across infrastructure and energy transition, including advising INSITE DC on the launch of a data centre investment platform with Alceon, on the issuance of US$733.3 million infrastructure asset-backed securities (IABS) by Bayfront IABS VIII Pte. Ltd and GreenYellow on a financing of more than €800 million.
