DBS Launches Sustainable Finance Solution for SMEs

Singapore-based financial services group DBS today announced the launch of the DBS Eco Renovate Loan, a new sustainable finance tool targeted at  small and medium enterprises (SMEs), aimed at enabling smaller companies to access a wider pool of capital to fund green  projects.

The new solution enables SMEs to borrow up to 100% of the cost of using resource efficient or energy optimization solutions for a green renovation project, at preferential rates. Companies can also choose to bundle the loan with a traditional commercial loanfor up to 80% of renovation costs, at prevailing commercial rates, for their total renovation needs.

According to DBS, the new solution aims to help SMEs to advance their sustainability agendas, with most sustainable financing initiatives typically targeted at larger companies. The loan program is the latest in a suite of SME-focusedsustainable financing solutions from DBS, including electric vehicle financing, sustainable trade financing and renewable energy financing. The bank also recently announced a collaboration with SkillsFuture SG to offer sustainability skills training, and DBS also offers an ESG-ready initiative helps SMEs learn to develop a sustainability strategy, implement their action plan and be prepared to validate their ESG performance through independent third-party assurance and reporting.

Koh Kar Siong, Group Head of Corporate and SME Banking, DBS, said:

 “SMEs are increasingly aware of the need to embed sustainable practices into their businesses, to better compete in a green economy. Yet, most sustainable financing initiatives are geared towards larger corporates as these companies have access to the data, resources, and know-how to track and measure their progress. The Eco Renovate Loan aims to bridge this financing gap by offering SMEs a simple, effective solution to kickstart their sustainability journeys.”

The Eco Renovate Loan is structured in line with internationally recognized Green Loan Principles. Companies and contractors on the renovation project use a simplified checklist to identify, track, and implement sustainability-related initiatives. They must submit a pre-renovation checklist with supporting documents such as quotations, as well as invoices as proof of work done after the project is complete.