Southeast Asian governmental efforts focused on regional electricity grid connectivity and renewable power generation is continuing to be a significant driver for transitional and ESG investments, BNP Paribas Asset Management Singapore CEO Angelia Chin-Sharpe told IFN Investor.
“It is still very much on top of the agenda in terms of energy sustainability and seeking sustainable funding in the ASEAN region. We are talking about hybrid and blended financing, both Shariah and conventional.”
Stating there are significant opportunities to look at debt issuances and structuring Islamic financing, for what is needed in terms of transitioning from brown to green energy projects, Angelia said talks are being conducted with many financial institutions to ensure adequate capital resources.
Going beyond public fundraising efforts with bonds and Sukuk, Angelia projected that opportunities would also abound for private debt and equity investors – with private banking outfits also becoming part of the wider effort to attract investments.
Speaking from an asset manager’s perspective, Angelia further said operating a fund offers a wider outreach. “Everybody knows that when we talk about achieving net zero, it is not by country. For everyone to gain, investors from developed countries are also keen to deploy capital.”
In terms of funding tenors, Angelia said most investors would be looking at open-ended structures that would allow for returns in 10 years or so, as long-term prospects, while keeping this democratized in terms of investment opportunities, especially for individuals.
“That is why you see the open-ended structure tends to be more popular.”
An example would be the BNP Paribas Future Forest Fund launched in November 2024, which is part of this group’s initiative to become the European leader for sustainable investment in private assets by 2030 and to exceed EUR50 billion (US$55.13 billion) in private assets under management.
As agricultural-related funds are also among ESG opportunities gaining wider awareness, including among Shariah-focused investors, Angelia said BNP Paribas can draw on its experience in issuing various instruments to allow for diversified offerings.
With BNP Paribas looking forward to more sustainable project launches ahead, Angelia said that from actively-managed offerings to passive opportunities like exchange-traded funds, “we integrate ESG across our investments from public to private markets”.
But going beyond investment returns, Angelia said governmental focus on ESG is critical as there would be key benefits to be gained. “When you move to a more sustainable infrastructure, you also create jobs as energy connectivity ensures … (even) more remote areas have access to energy.”
