DBS has launched a hybrid financing solution to help small and medium enterprises (SMEs) access a wider pool of capital to finance their sustainability journeys. The DBS Eco Renovate Loan enables SMEs to borrow up to 100% of the cost of using resource efficient or energy optimisation solutions for a green renovation, at preferential rates.
Companies can also choose to bundle the loan with a traditional commercial loan to finance their total renovation needs.
Koh Kar Siong, Group Head of Corporate and SME Banking, DBS, said: “SMEs are increasingly aware of the need to embed sustainable practices into their businesses, to better compete in a green economy.
“Yet, most sustainable financing initiatives are geared towards larger corporates as these companies have access to the data, resources and know-how to track and measure their progress. The Eco Renovate Loan aims to bridge this financing gap by offering SMEs a simple, effective solution to kickstart their sustainability journeys.”
The Eco Renovate Loan is structured in line with internationally recognised Green Loan Principles, and is the latest in a suite of financing solutions, including electric vehicle financing, sustainable trade financing and renewable energy financing, by DBS to help accelerate the adoption of sustainability solutions by SMEs.
Companies and contractors use a simplified checklist to identify, track, and implement sustainability-related initiatives in their renovation project. Companies must submit a pre-renovation checklist with supporting documents such as quotations, as well as invoices as proof of work done after the project is complete.
