ESG launches enhanced green financing scheme

This provides 70% risk-sharing to support lending by partner FIs.

Enterprise Singapore (ESG) has introduced an enhanced scheme that will give businesses easier access to green financing.

Local firms developing technologies and solutions to reduce waste, resource use and greenhouse gas emissions can seek financing from the government through the Enterprise Financing Scheme-Green (EFS-Green).

EFS-Green provides risk-sharing of 70% to support lending by partner financial institutions to  Project Developers, System Integrators and Technology & Solution Enablers in clean energy, circular economy, green infrastructure, and clean transportation sectors.

ESG’s partner financial institutions are DBS, HSBC, OCBC and United Overseas Bank Ltd (UOB).

The enhanced scheme also covers a range of financing needs, including developmental capital, fixed assets, trade, project, venture debt, and mergers and acquisitions.

Application for loans is open from 1 October 2021 to 31 March 2024.

Png Cheong Boon, CEO of ESG, said the scheme will “in turn will help other enterprises adopt green solutions and capture opportunities globally.”

This was echoed by Joyce Tee, group head of SME Banking at DBS, and Linus Goh, head of OCBC’s Global Commercial Banking Group, who both said the scheme is “timely.”

“It will help convince more SMEs (small- and medium-sized enterprises) to embark on their green and sustainability journeys. The scheme also has the potential to further catalyse Singapore’s growth in emerging sectors such as clean energy & decarbonisation, circular economy, clean transportation and green infrastructure,” Tee said.

Goh, for his part, said OCBC believes that EFSGreen “will equip many more SMEs with green loans to build new capabilities, tap new markets and differentiate their products and services.”

UOB and HSBC also praised the initiative.

“The EFSGreen scheme is a direct, measurable scheme which will channel capital towards eligible businesses that are working towards the shift to a lower-carbon economy,” Regina Lee, HSBC Singapore’s head of Commercial Banking, said.

Eric Tham, UOB’s group head of Commercial Banking, said the scheme “exemplifies public-private partnerships that broaden enterprises’ strategic horizons beyond Singapore.”

More information on EFS-Green are available on ESG’s website.