Toyota Financial Services Singapore signs maiden transition finance facility with DBS Bank to support its carbon neutrality efforts
Singapore, 30 Sep 2021 - Toyota Financial Services Singapore (TFSSG), a subsidiary of the financial services arm of Toyota Motor Corporation (Toyota), has signed a SGD 150 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 Electrified Vehicle
[1]
sales in Singapore.
Mr Adrian Chai, Group Head of Corporate Banking, DBS Bank, said: “Supporting the transition of the automotive sector towards a lower carbon future is an urgent imperative, and we are glad to partner one of the world’s leading car makers Toyota to drive positive change. 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
[2]
. 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.”
Mr Vinod Cherumadathil, Chief Executive Officer, Toyota Financial Services Singapore, said: “The sustainability-linked loan facility with DBS demonstrates our collective commitment towards global decarbonisation 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.”
The transition loan facility aligns with DBS’ efforts to provide sustainable financing to more corporates to support industrial transformations towards a low carbon future. DBS raised its sustainable finance target to SGD50 billion by 2024 earlier this year, accelerating its sustainability agenda in helping customers incorporate sustainable business practices into their overall business strategy. DBS has also committed to ensuring net zero operational carbon emissions across the bank by 2022 and continues to reduce the bank’s carbon footprint while advancing its sustainable procurement agenda.
Broad adoption of Electrified Vehicles – A critical step towards carbon neutrality
To work towards global decarbonisation efforts, the widespread adoption of electrified vehicles is key as they offer an affordable and viable option to reduce emissions.
Since its founding, Toyota has continuously strived to contribute to the sustainable development of society and the Earth through the provision of high-quality and innovative products and services. The ‘Five Main Principles of Toyoda’ have been handed down to every Toyota Group company since and the group has been working on environmental initiatives since the 1960s. In 2015, when the Paris Agreement was adopted at COP21
[3]
, Toyota further reinforced their sustainability commitment and announced the ‘Toyota Environmental Challenge 2050’ to reduce the environmental burden attributed to automobiles to as close to zero as possible, while developing measures to contribute a positive impact on the Earth and its societies with the aim of achieving a sustainable society.
[1]
Toyota has undertaken to establish a full line-up of electrified vehicles―namely, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and fuel cell electric vehicles (FCEVs)
[2]
International Energy Agency (IEA)
[3]
The 21st Session of the Conference of the Parties to the United Nations (UN) Framework Convention on Climate Change
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
World’s Best Bank
” by Euromoney, “
Global Bank of the Year
” by The Banker and “
Best Bank in the World
” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “
Most Innovative in Digital Banking
” by The Banker. In addition, DBS has been accorded the “
Safest Bank in Asia
” award by Global Finance for 13 consecutive years from 2009 to 2021.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit
www.dbs.com
.
About Toyota Financial Services Singapore (TFSSG)
TFSSG is the Singapore subsidiary of Toyota Financial Services Corporation (TFSC) which is a wholly owned subsidiary of Toyota Motor Corporation (TMC) in Japan.
TFSC has a global footprint in more than 40 countries/locations and TFSSG is incorporated on 2nd Jan 2020 in Singapore. TFSSG’s endeavour is to enable people to experience products and services which ultimately allow them to enjoy the freedom of movement. By offering financial and mobility solutions, a unique bond and value is created with people.
For more information, please visit:
Toyota Financial Services Singapore website
https://www.toyotafinancial.sg
Toyota Sustainability website
https://global.toyota/en/sustainability
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
