Toyota Financial Services Singapore (TFSSG), a subsidiary of the financial services arm of Toyota Motor Corporation (Toyota), has signed a S$150 million (US$110.19 million) transition loan in the form of a sustainability-linked revolving credit facility with DBS Bank. The net proceeds will be used to grow Toyota’s electric vehicle (EV) sales in Singapore.

According to DBS, the transition loan facility aligns with its efforts to provide sustainable financing to more corporates to support industrial transformation towards a low-carbon future. DBS has raised its sustainable finance target to S$50 billion by 2024, accelerating its sustainability agenda in helping customers incorporate sustainable business practices into their overall business strategy. The bank has also committed to ensuring net-zero operational carbon emissions across its network by 2022 and continues to reduce its carbon footprint while advancing its sustainable procurement agenda.

Toyota’s EV products include hybrid electric vehicles, plug-in hybrid electric vehicles, battery electric vehicles, and fuel-cell electric vehicles.

Adrian Chai, group head of corporate banking at DBS Bank, says: “The transport sector is one of the largest emitters of greenhouse gases globally, accounting for around a quarter of global carbon dioxide emissions. Road vehicles such as passenger cars, in turn, contribute to nearly three-quarters of transport emissions. Providing financing support to accelerate the adoption of electrified vehicles is therefore key to a climate-aligned future not just for Singapore, but for the rest of the world as well.”

Toyota Financial Services Singapore chief executive officer Vinod Cherumadathil adds: “The sustainability-linked loan facility with DBS demonstrates our collective commitment towards global decarbonization efforts with a focus to enhance access and adoption of more electrified vehicles in Singapore. As the leading financier for Toyota vehicles, we continuously strive to achieve a meaningful environmental impact to cater to the demands of a diverse and more environmentally-mindful customer base.”