Supported by the Monetary Authority of Singapore’s Green and Sustainability-Linked Loan Grant Scheme, the framework will make financing more accessible to companies contributing to the creation of smart cities.
UOB is expanding its Green Infrastructure Financing Framework, launched in 2019 to provide sustainable financing to companies in the infrastructure sector, to support the sustainability efforts of more companies from various sectors, working with them closely for the development of sustainable and smart cities, the bank announced in a statement on Wednesday.
The bank said the UOB Smart City Sustainable Finance Framework (UOBSCSFF) «recognizes the multi-faceted needs within smart cities», while responding to different financing needs of stakeholders in the form of green loans and sustainability-linked loans. Under the framework, companies can apply for sustainable financing without having to develop their own financing framework.
The UOBSCSFF sets out criteria the bank’s corporate and institutional clients must meet when accessing a range of products, from green or sustainability-linked loans and trade finance facilities to other sustainable banking products. UOB said it will monitor the company’s management of loan proceeds and the environmental and social impact of its business activities on an annual basis.
Crucial Role
«Financial institutions can and must play a part, together with governments and businesses, to help channel more funds to sustainable development. Such efforts will go a long way in making the cities of Asia more sustainable and liveable,» Frederick Chin, UOB head of group wholesale banking and markets, said.
Smart cities are essential to help municipalities and countries manage and rebound from the COVID-19 pandemic. Digital technologies will play a growing role in delivering key public services and supporting economic activities while promoting environmentally-friendly practices,» said Lau Xin Yi, Southeast Asia green finance lead at Carbon Trust, which provided a second party opinion on the UOBSCSFF.
Earlier this week, OCBC similarly launched a pilot Sustainable Financing Framework for small and medium enterprises (SMEs) in Singapore to access financing of up to S$20 million ($14.89 million) to accelerate their sustainability plans.
