Sustainable financing is gaining global traction. In Asia, Singapore’s central bank recently raised $510 million under the Green Investments Partnership to fund renewable energy, transport, and storage projects across the region. At the same time, development banks in Europe and globally are expanding climate and healthcare-linked lending, signalling a broader structural shift in how debt capital is being deployed.
In Europe, however, the reality is more complex. According to PitchBook (Sep 2025), ESG-labelled funds under the EU’s SFDR Articles 8 and 9 raised a record €84.1 billion in 2024, but scrutiny is intensifying with stricter definitions and heavier compliance requirements. Fundraising is outpacing actual capital deployment, leaving ESG-linked debt issuance uneven across countries and sectors. Private credit funds are now recalibrating their ESG strategies to balance regulatory risks with investor expectations.
For founders and CFOs, debt remains a powerful tool to finance ESG-aligned growth, access concessional or blended structures, and enhance investor appeal — but in the EU, expect longer timelines, tougher disclosure standards, and more selective lender appetite.
Broader Trends & Attitudes
- Shift from Equity-Only to Hybrid Funding:
Start-ups are diversifying their capital mix, moving beyond venture capital into government grants, crowdfunding, and debt. In technology alone, over 56% of early-stage ventures now utilise loans—demonstrating growing comfort with debt as part of the toolkit. - Founder's Financial Savvy Matters:
A founder’s understanding of debt structures correlates strongly with their ability to secure loans effectively. Those with deeper knowledge of credit terms and instruments are better positioned to unlock debt as a strategic lever for growth.
Corporate Appetite & Strategic Behavior
In the UK and EU, CEOs and CFOs are leaning towards project-linked debt—particularly in infrastructure and energy, where stable cash flows appeal to lenders. Where pricing and long-end yield risk are prohibitive, private credit and hybrid structures are increasingly preferred for their flexibility.
In Singapore and wider Asia, corporates are forging partnerships with concessional lenders, such as the GIP, to fund environmental infrastructure through bespoke debt solutions.
Explore tailored debt solutions that fuel growth
Industry-Agnostic Debt Advisory Tailored to Your Sector
At Fuse Capital, we know one size doesn’t fit all—especially in debt financing. We advise businesses seeking £2–25M in private debt, bringing sector-specific expertise and bespoke strategies.
Why this matters:
- Deep sector knowledge — From Agritech and Biotech to Fintech, Healthcare, Energy, and E-mobility, we understand your industry’s unique dynamics
- Strategic guidance through complexity —Whether navigating capital-heavy infrastructure or high-velocity innovation, we combine technical rigour with practical insight to structure debt that fuels growth.
- Global reach, local insight — Our international lender network ensures flexible funding, without loss of control.
Ready to scale strategically? Explore how Fuse Capital aligns its debt solutions with your industry needs.
Become an Introducer — Partner with Fuse Capital
Turn connections into capital. Share a company name and an introduction—we take it from there, structuring and placing debt financing (£/$2–25M) for mid-market, growth-focused firms.
Trusted path to market — With 12+ years of advisory expertise, £500M+ in arranged capital, and relationships with 150+ specialist lenders, your introductions are positioned as market-ready.
Clarity & protection — With NDAs, transparent referral terms, and fees payable only on completion, your client relationships and reputation remain fully protected.
Interested? Explore how to become an Introducer with Fuse Capital
Bottom Line
- Private credit has moved from niche to mainstream. For SMEs and finance leaders, this shift means:
- Faster, bespoke funding for growth or refinancing.
- More strategic funding partners instead of one-time lenders.
- A growing opportunity set—whether through senior, subordinated, or asset-backed structures.