How private credit is filling the corporate finance gap for independent power producers, energy infrastructure developers, and energy-intensive businesses across Asia Pacific.
Published by
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
30 years of institutional finance. Former hedge fund founder. Senior roles at top global investment banks. GMG Capital Advisory arranges private credit and special situations finance of $10M–$100M for operating companies across Asia Pacific.
[email protected] | +65 9773 0273 | Singapore · Hong Kong | Asia-Pacific
Power and energy project finance in Asia Pacific is one of the most capital-intensive sectors in the region. For the $10M–$100M mid-market of independent power producers, distributed energy assets, and corporate energy infrastructure, private credit has become the most reliable source of structured corporate capital.
Power & Energy Finance is one of the most active and underserved sectors in Asia Pacific private credit. The capital is available, if you know where to find it.
Why Banks Are Pulling Back from This Sector
Energy sector lending has become increasingly complex for conventional banks. ESG pressures have led many banks to impose explicit restrictions on fossil fuel-related lending, creating financing gaps for conventional power generation assets regardless of their regional energy security importance. Renewable energy assets, while favoured in principle, often fall below the minimum transaction thresholds at which bank project finance teams find the economics viable. The result is a significant mid-market financing gap in the Asian energy sector.
Collateral and Security in This Sector
Power purchase agreements: Long-term contracts for electricity supply at fixed or formula prices from creditworthy offtakers, utilities, government entities, or large corporations. Among the strongest possible collateral in the private credit market.
Plant and equipment: Generation assets, turbines, solar panels, transformers, and grid connection infrastructure.
Land rights and easements: The underlying site, access rights, and grid connection easements. Particularly important for solar and wind assets.
Environmental permits and licences: Operating licences and environmental approvals represent significant value given the difficulty and time involved in obtaining them.
Carbon credit streams: For qualifying renewable energy and emissions reduction projects, contracted carbon credit streams from credible registries provide an additional revenue component.
GMG Capital Advisory in This Sector
GMG Capital Advisory has arranged private credit for independent power producers, renewable energy developers, and energy infrastructure businesses across Asia Pacific. We understand the PPA dynamics, permitting requirements, and specific structuring considerations for energy sector private credit transactions in each of our active markets.
About GMG Capital Advisory
Donald Klip | Co-Founder, Global Mortgage Group | Head, GMG Capital Advisory
Donald Klip has 30 years of institutional finance experience spanning hedge fund management and senior roles at the world’s top global investment banks. GMG Capital Advisory specialises in arranging and structuring corporate debt financing of $10M–$100M for operating companies, asset owners, and project sponsors where conventional bank lending is unavailable, insufficient, or too slow. We operate across 23+ jurisdictions in Asia Pacific.
www.gmg.asia | [email protected] | +65 9773 0273 | Singapore · Hong Kong
The Debt Desk
Corporate private credit intelligence for Asia Pacific’s $10M–$100M middle market. Published by GMG Capital Advisory. Part of the Private Credit Asia content series.
www.gmg.asia | Read all 41 articles in the series
