Sunday, 28 November, 2021

Easier access to green financing for S’pore firms

Easier access to green financing for S’pore firms

Popular News

SINGAPORE: Singapore businesses that want to develop solutions to reduce waste and greenhouse gas emissions may find it easier to gain access to financing via a new government scheme.

Under the new Enterprise Financing Scheme-Green, the Government will provide 70 per cent risk-share for loans made by participating financial institutions to local firms that fall under the following categories, Enterprise Singapore said in a news release on Sunday, report agencies.

They are: Project developers, system integrators, as well as technology and solution enablers from the sectors of clean energy, circular economy, green infrastructure and clean transportation sectors.

For instance, project developers refer to local firms that develop, manufacture, build and operate capital-intensive green projects which incorporate proprietary engineering, technologies or solutions with a “positive environmental impact”.

Enterprise Singapore said the new financing scheme covers a range of financing needs, including developmental capital, fixed assets, trade, project, venture debt, and mergers and acquisition.

It is effective from this month to the end of March in 2024.

This follows the announcement of the Enterprise Sustainability Programme on Friday. The programme, administered by Enterprise Singapore, aims to help local businesses build capabilities in the area of sustainability so as to seize opportunities in the green economy.

The new Enterprise Financing Scheme-Green is an enhancement of the existing Enterprise Financing Scheme, which currently extends financing help to firms in six areas, such as the daily operational cashflow needs of SMEs and trade needs.

Enterprise Singapore’s chief executive officer Png Cheong Boon said demand for green solutions is set to grow globally.

The new scheme will therefore help “green technology innovators in Singapore to have easier access to green financing, in order to create ever-evolving, ever-improving solutions,” he added.

“These enterprises are pushing new boundaries and bearing additional risks in enabling technologies for the transition towards a green economy. This in turn will help other enterprises adopt green solutions and capture opportunities globally,” said Mr Png.

The Enterprise Financing Scheme-Green will be supported by partner financial institutions, including DBS, HSBC, OCBC and UOB.

These institutions have developed green and sustainability financing frameworks for SMEs and businesses approved by the Monetary Authority of Singapore’s recognised consultants, Enterprise Singapore said.

Representatives of the partner banks welcomed the new financing scheme, with UOB’s group head of commercial banking Eric Tham noting that it offers a full spectrum of banking facilities and comes as sustainability is a “global imperative”.