SME Green Loans launched by HSBC
(16 March 2020 – Singapore) HSBC is the first Bank to recognise Singapore industry certifications for loan qualification, reducing time, complexity and cost typically associated with green finance for SMEs. The move provides small and medium enterprises (SMEs) with finance to develop sustainable projects by utilising existing ‘green’ certifications.
A first for the Singapore market, the Green Loan will draw on existing certifications from Singapore industry authorities to certify the validity of specific green projects or assets, instead of the externally-reviewed bespoke Green Finance Frameworks used by corporates. The minimum loans size is US$350,000 and the group is accepting SGD and USD. The Green Loan is available to qualifying Business Banking customers of HSBC Singapore, and will be issued on a ‘term’7 basis at a minimum limit of USD$350k, denominated in either SGD or USD. Applications will be subject to HSBC’s usual credit review process.
“Singapore is an internationally recognised hub for green finance, underpinned by the development of market-leading frameworks and incentives. By utilising these well-developed certifications, we are drawing on the best of Singapore’s sustainability credentials to plug the financial gap felt by SMEs who want to start on a green transition” said HSBC Singapore Head of Business Banking, Li Lian Ng.
“We all have a role to play in climate action. The new Green Loan will broaden climate action initiatives, lending SMEs the impetus to better manage resources efficiently that translates to savings, while minimising negative impact to the environment. SEC’s Green Label follows a set of criteria that assess products and construction materials with environment and health in mind” stated Singapore Environment Council Executive Director, Ms Jen Teo.