OCBC has launched a framework designed to make access to financing easier for small and medium enterprises (SMEs) that are involved in sustainable activities.
The new Sustainable Financing Framework helps SMEs in Singapore to access financing of up to S$20 million ($14.89 million) to accelerate their sustainability plans, the bank announced on Tuesday.
Developed with the support of the Monetary Authority of Singapore’s (MAS) Green and Sustainability-Linked Loan Grant Scheme, the framework eliminates the need to establish a customized framework for each company
Financing under the framework can come in the form of solutions such as green loans, green letters of credit and green banker’s guarantees. It covers green activities in eight categories, including clean transportation, green buildings, energy efficiency and more.
Green Shift
«As a leading SME bank in the region, our ambition is to make SME financing green — to help SMEs in the shift towards greener businesses and sustainable development,» Linus Goh, head, Global Commercial Banking, OCBC Bank, said.
Over the past two years, OCBC has doled out $1.6 billion in green loans to SMEs and mid-cap corporates for green buildings, hospitality, construction and solar projects.
Earlier this year, OCBC increased its sustainable loan target to S$25 billion by 2025, up from the original S$10 billion target which the bank achieved two years ahead of plan in the first quarter of this year.
