The facility is structured as a green loan under the Asia Pacific Loan Market Association’s (APLMA) Green Loan Principles, the firm said in a statement. This ensures that proceeds are specifically earmarked to fund projects that advance the circular economy, directly aligning with Circulate Capital’s mission to build resilient, sustainable circular supply chains. This facility also demonstrates HSBC’s ability to mobilise green loans that align with Circulate Capital’s mission.

DLA Piper advised HSBC on the transaction.

The revolving credit facility, which is designed to scale in size as the fund grows, provides Circulate Capital with a flexible source of liquidity to support its investment activities and working capital needs; it can be extended in duration as required. By using this facility ahead of traditional LP capital calls, Circulate Capital can act with increased agility when investment opportunities arise. Beyond operational efficiency, the facility is a mechanism for strengthening the fund's overall impact and financial profile. This institutional-grade financial structure will enable the firm to be more decisive in deploying capital across target markets, and supporting portfolio companies to scale while delivering the robust returns necessary to prove that impact and profitability are mutually reinforcing.

The announcement follows the March 2026 first close of Circulate Capital Ocean Fund II (Asia Fund II) at $220 million, surpassing the scale of its predecessor and reaching over 70 per cent of its $300 million target. Asia Fund II targets high-impact investments across India, Indonesia, Thailand, Vietnam, the Philippines, and Malaysia, with a focus on plastic packaging, electronics, and apparel.

“Circulate Capital is helping to scale the circular economy across South and Southeast Asia, and we are pleased to support them with this revolving green loan facility,” Gilbert Ng, head of Banking, Corporate and Institutional Banking, HSBC Singapore, said. “With funding still a barrier for many sustainability initiatives in this region, banks have a key role in unlocking capital for real-economy impact.”

DBS, CBI
In response to a growing need to catalyse financing for climate adaptation and resilience across the region, Singapore-headquartered (CBI), to deepen capabilities and advance financing solutions in this space.

The partnership comes at a time when economies need to adapt and develop more resilient infrastructure to cope with climate change and escalating physical climate risks, the firm said in a statement. This in turn presents a growing need for capital – to the tune of over $365 billion a year by 2035.

Climate adaptation helps economies, businesses and communities respond to the physical impact of climate change such as floods, heatwaves and rising sea levels, while resilience is the ability of these groups to withstand and recover from climate-related shocks. While reducing greenhouse gas emissions remains critical, the intensifying impact of physical climate risks underscores the need to scale financing for adaptation and resilience in parallel.

Adaptation and resilience are rapidly becoming a top priority for governments and company boards alike. In Singapore, the Ministry of Sustainability and the Environment has designated 2026 as the Year of Climate Adaptation, signalling the increasing importance of strengthening national resilience against physical climate risks. DBS’ aim, which aligns with these ambitions, is to scale up financing and investment for adaptation and resilience purposes, the firm continued.

Against this backdrop, DBS and CBI will sign a partnership agreement on the sidelines of Ecosperity 2026 which ends on 21 May, Temasek’s annual flagship sustainability event is held at the Sands Expo & Convention Centre. The signing will be witnessed by the Minister for Sustainability and the Environment as well as Minister-in-charge of Trade Relations, Grace Fu.

Through the collaboration, DBS and CBI said they will co-develop a flagship research paper on climate adaptation and resilience investment opportunities in Asia-Pacific. The paper aims to identify investable opportunities across key sectors including energy and real estate, supported by CBI’s proprietary assessment methodologies and DBS’ regional insights.

In addition, DBS said it will embark on an internal capacity-building programme to embed adaptation and resilience considerations across its business. This includes foundational and advanced training sessions to equip relationship managers and assessment teams with technical expertise to integrate adaptation and resilience considerations into core banking processes.

“Financing resilience investment has become critical to avoid derailing economies and increasing default risk. The opportunities for productive investments are enormous. DBS aims to rapidly grow this in the region and we are privileged to have the opportunity to support them," Sean Kidney, CEO of the Climate Bonds Initiative, said.

“As the effects of physical climate risks grow in scale and frequency, the need to help businesses and communities adapt to better withstand climate shocks is becoming more urgent,” Kelvin Wong, chief sustainability officer, DBS, said. “This is especially true for Asia which is one of the most climate vulnerable regions in the world. At DBS, we believe the transition to a low-carbon economy must go hand-in-hand with adaptation – and finance can be a lever that accelerates both. Our partnership with CBI will strengthen our ability to identify credible, investable opportunities in climate adaptation and resilience.”