Circulate Capital Secures HSBC Green Loan to Scale Circular Economy Investments Across Asia

Circulate Capital, a Singapore-based investment firm specializing in the circular economy, has established a revolving green loan facility with HSBC. Announced on May 19, 2026, the facility is designed to support investments in packaging, recycling and materials businesses throughout South and Southeast Asia.

Expanding Regional Circular Impact

This financial milestone follows the March 2026 first close of the Circulate Capital Ocean Fund II, which raised $220mn. That fund has already achieved more than 70% of its $300mn total target, surpassing the scale of the firm's previous fund. The fund’s primary focus includes high-impact sectors such as electronics, apparel and plastic packaging within India, Indonesia, Thailand, Vietnam, the Philippines and Malaysia.

Regula Schegg, Founding Partner, CFO & CCO, Circulate Capital, said, “This initiative is strong validation for our investment thesis. The facility enables us to move at the pace required to capitalise on impactful transactions we see in the market, with highly efficient access to capital, to the strategic benefit of our investors.”

She emphasised that the arrangement offers efficient access to capital, enabling the firm to capitalise on impactful transactions at a necessary pace to benefit investors.

Gilbert Ng, Head of Banking at HSBC Singapore, stated in the news release that the bank aims to help scale the circular economy in a region where funding is often a barrier to sustainability. He described the bank's role as essential for unlocking capital to create real-economy impact. Soumitro Mukerji, a partner at DLA Piper, added that the structure demonstrates how financial innovation can drive measurable environmental progress at scale and accelerate the transition to resource-efficient supply chains.

Inside the Green Loan

The loan is structured according to the Green Loan Principles of the Asia Pacific Loan Market Association (APLMA). This framework ensures that the capital is specifically used for projects that advance circular supply chains. DLA Piper served as the legal advisor to HSBC for this transaction.

By utilising this revolving credit facility, Circulate Capital can access liquidity faster than through traditional limited partner capital calls. This flexibility allows the firm to be more decisive when investment opportunities arise in its target markets. The facility is built to scale in size as the fund expands and its duration can be extended as needed. It serves as a strategic mechanism to strengthen the fund's financial profile while proving that impact and profitability are mutually reinforcing.