Singapore-based financial services group DBS today announced the launch of the DBS Eco Renovate Loan, a new sustainable financing instrument targeted at small and medium-sized enterprises (SMEs), aimed at giving smaller companies access to a broader capital pool to finance green projects.
The new solution allows 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. Businesses can also choose to bundle the loan with a traditional commercial loan for up to 80% of renovation costs, at current commercial rates, for their total renovation needs.
According to DBS, the new solution is aimed at helping SMEs advance their sustainability agenda, with most sustainable finance initiatives typically aimed at larger companies. The loan program is the latest in a range of SME-focused sustainable finance solutions from DBS, including electric vehicle finance, sustainable trade finance and renewable energy finance. The bank also recently announced a partnership with SkillsFuture SG to offer sustainability skills training, and DBS also offers an ESG-ready initiative that helps SMEs develop a sustainability strategy, implement their action plan and be prepared to improve their ESG performance to be validated via independent third parties. 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 in their businesses to better compete in a green economy. Yet most sustainable finance initiatives are targeted at larger companies because these companies have access to the data, resources and knowledge to track and measure their progress. The Eco Renovate Loan aims to bridge this financing gap by providing SMEs with a simple, effective solution to kick-start their sustainability journey.”
The Eco Renovate Loan is structured in accordance with the internationally recognized Green Loan Principles. Companies and contractors involved in 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 quotes, as well as invoices as proof of the work carried out after the project is completed.