By Nishtha Asthana, AsianInvestor

As traditional banks become increasingly selective in their lending practices – private credit is emerging as a crucial player in addressing the financing gap for Asia’s energy transition.

This shift is highlighted in a recent article by AsianInvestor, emphasizing how private credit solutions are stepping into this void, offering flexibility and tailored financing structures for early-stage and transitional green projects.

Kenneth Ho, Director of Sustainability at SeaTown, underscores the advantage of private credit by stating, “Unlike green bonds or bank loans, private credit can be reshaped over time using customised terms—an ongoing partnership approach which is ideal for dynamic growth projects.”

This ability to adapt financing solutions to meet the specific needs of energy projects is vital in a landscape where the International Energy Agency estimates a need for $4.5 trillion per year in clean energy finance until 2030 to limit global warming.

Moreover, private credit lenders can swiftly close transactions, providing certainty for borrowers in a market where timing is essential. “Private credit lenders can take a more flexible, solutions-oriented approach – drawing credit comfort from a different part of the group such as corporate or personal guarantees or collateral that is not correlated to the business.”, said Kenneth.

As the financing demand for Asia’s energy transition grows, SeaTown believes that private credit is poised to play a key role in the region’s shift towards a more sustainable energy future.

Read more at AsianInvestor (subscription may be required): http://bit.ly/4mJKyGI