DBS to Receive Funding from PBoC for Sustainable Projects
(9 February 2023 - China) DBS China has been chosen by China’s central bank to receive low-cost funding for lending to sustainable development projects.
Under the Carbon Emission Reduction Facility, the People’s Bank of China (PBOC) will extend low-cost funding to DBS China. DBS China will then use the funding to offer low-cost loans to fund sustainable development projects. Key sectors targeted include clean energy, energy saving, environmental protection, and carbon emission reduction technologies.
PBOC will provide financial institutions with funds equal to 60 percent of a loan's principal at an annual interest rate of 1.75 percent. It will also guide financial institutions to provide carbon emission reduction loans to enterprises in key areas of decarbonisation, on the premise of independent decision-making and risk-taking.
As of September 2022, loans valued at over RMB400b have reportedly been made by PBOC via the facility.