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Green Finance
UOB targets SME sustainability-linked finance
Sage offering provides preferential bank loan rates for achievement of pre-agreed SPTs
Tom King 12 Jun 2024

Singaporean bank UOB and government agency Enterprise Singapore (EnterpriseSG) have launched the Sustainability-Linked Advisory, Grants and Enablers (Sage) programme targeting small and medium-sized enterprises (SMEs).

The new offering has been created to streamline sustainability-linked financing solutions for SMEs by providing preferential loan rates from the bank for participating SMEs that achieve pre-agreed sustainability performance targets (SPTs). 

Under the Sage programme, companies can select from three plug-and-play options of predefined SPTs to obtain sustainability-linked financing from UOB.

These SPTs have also been validated by second-party opinion partner Environmental Resources Management to ensure credibility and alignment with the globally recognized Sustainability-Linked Loan Principles. The SPTs focus on three areas:

  • Reduction of greenhouse gas (GHG) emissions
  • Certification of management systems
  • Improvement of ESG ratings.

The programme – in collaboration with sustainability service partners CDP, Convene ESG, M1, Paia Consulting, PwC Singapore and TÜV SÜD – allows SMEs to join with a single offering of pre-set SPTs.

With preferential pricing from the preferred sustainability partners and support from EnterpriseSG, SMEs in Singapore can defray up to 85% of the costs of ESG digital platform, advisory and assurance services for GHG inventory, certification of ISO management systems, and enhance ESG performance disclosures to meet these SPTs.

 “The Sage programme sees an industry-first collaboration with leading industry partners to give our SME clients a seamless experience in implementing sustainability initiatives with pre-approved SPTs,” says Lim Lay Wah, the bank’s group head of sector solutions and financial institutions. “The one-stop access will connect them to a network of sustainability service partners to advance their green transition.” 

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