When it comes to sustainable finance, the Singapore-headquartered bank is the first port of call for many
India will increasingly see participation from local and foreign banks, institutional investors, private credit, and family offices for sustainability finance. Sustainability is getting embedded within business strategies of corporates, making it a mainstream segment of corporate financing portfolios. Speaking exclusively to Moneycontrol, Shilpa Gulrajani, Head of Sustainable Finance, Institutional Banking Group, DBS Bank, said when it comes to sustainable finance, the Singapore-headquartered bank is the first port of call for many corporates across the globe.
For DBS, sustainability doesn’t stop with transition funding; it includes financing projects which have a social impact and projects which focus on emerging technologies. Adding that India closed 2025 as DBS Bank’s third largest market for sustainable financing, the sub-continent is expected to remain a high priority for Asia’s largest bank.
Until three years back, sustainability existed as a branch of financing. Today, it is a serious part of corporate lending. What explains this change?A decade ago, sustainable finance was largely concentrated within capital markets, with sovereigns and financial institutions issuing green bonds. The market was primarily driven by Japan, South Korea and Australia. Post 2020, corporates, particularly those in hard-to-abate sectors and consumers, recognised that attracting long-term international investors required rethinking their business models with an emphasis on transformation and long-term business resilience. Today, sustainability is increasingly embedded within business strategy, influencing positioning and expanding access to diversified capital. It has moved into the mainstream of business.
According to BloombergNEF, global sustainable debt issuance reached USD 2.21 trillion in 2025. Although growth remained flat, this stability is considered positive given the broader macro environment. Asia represents a significant opportunity, with green financing continuing to dominate, while social loans are gaining momentum. Renewable energy projects are no longer viewed in isolation; greater emphasis is now placed on the broader enabling ecosystem, including battery storage, grid stability and associated infrastructure. New technologies, such as hydrogen-ready CCGTs, waste-to-energy, and biofuels, are also gaining traction. However, scaling these solutions requires a robust end-to-end value chain.
How do you see corporates transition in India?Countries like India, which offer immense scale, will attract sizable investments into the green space. I don’t see green financing, or the “green” label, stagnating. It will continue to grow. What complements it well, especially in emerging and large economies like India, is the social lens. Even when discussing a green energy transition, the social dimension remains critical. India has a real economy deploying financing into areas such as education, women’s entrepreneurship, and access to essential services in remote locations— including low-carbon energy and network access. This naturally links to themes like low-cost housing. Financial institutions and non-banks in India play a significant role, and hence, social thematic financing is picking up.
How big is this opportunity for DBS’s corporate banking?Last year, we saw a significant increase in social lending. In India, we supported educational financing through our transaction with Credila, an onward-lending structure in the education space. In Indonesia, we executed a landmark social bond issuance for BRI—the first social bond of this size issued by a bank in that market. We have also incorporated the social lens into KPI-linked formats. Even when the loan is not labelled “social”, our approach is that corporate-level KPI-linked lending should include at least two KPIs which include transition financing (energy-related), and social impact.
How does India fit for DBS?India was DBS Group’s fastest-growing market for sustainable finance in 2025. It is the third largest key market for sustainable financing in Asia and is a strategic market due to its scale. DBS focuses on renewables and corporate transition projects, particularly where taxonomy alignment is clear. Technologies such as Battery Energy Storage Systems (BESS), waste-to-energy, biomass, and biofuels are expected to grow rapidly. India’s large waste generation profile makes it well suited for circular bio-energy models.
India will increasingly see participation from local and foreign banks, institutional investors, private credit, and family offices. DBS works closely with core clients through consortium structures. For sustainability-linked capex programmes, DBS is often among the earliest banks to be onboarded. Our differentiation strengthens further when client capital needs extend beyond India, as DBS can tap diversified global investor pools and align them with issuer requirements.
Some of our key deals in India are:• DBS and HSBC closed a USD 350 million sustainability-linked credit facility for ChrysCapital X LLC—the first sustainability-linked loan raised by an India-focused fund.• DBS Bank India extended a Sustainability-Linked Trade Facility (SLTF) of INR 670 crore to Indorama India Private Limited.• Tata Realty & Infrastructure Ltd. and DBS Bank India Ltd. executed a ₹1,280 crore Green Loan Facility, with DBS acting as Sole Advisor and Green Loan Coordinator.• DBS led the USD 80 million maiden Green Finance Facility for Aseem Infrastructure through its GIFT City branch.• Avanse Financial Services raised a multicurrency syndicated ECB equivalent to USD 200 million, jointly led by DBS and HSBC India. The facility qualified as a social loan.
India is also a very price-sensitive and competitive market. How do you ensure the IRRs of project loans meet global standards, given the competitiveness?Asia, as a region, is generally price-sensitive. Historically, emerging Asia has been a loan-driven market, though this is gradually changing. In a country like India, where investments are multifold, diverse sources of capital will be needed to support this growth. Corporates will also need capital diversification to sustain future investment cycles. As projects scale, there will be a conscious push to tap different capital sources such as local banks, foreign banks operating locally, global foreign banks, institutional investors, private credit, and even family offices for niche structures. Everyone will have a role to play.
Would DBS be comfortable participating in Indian consortium deals?For our core clients, DBS naturally participates in consortium and multiple-banking arrangements. Banks increasingly work together, whether for project finance or corporate lending, with many participating on equal footing. Differentiation emerges when a bank can provide capital or investor access from outside the country. That is where DBS stands out: bringing diverse global investors, matching investor appetite with corporate needs in terms of theme, sector, project profile and risk.
Looking three years ahead, how do you expect this market to evolve for DBS in India?In the past year alone, we grew our sustainable finance assets in India significantly. We delivered a broad set of transactions, such as a large-scale real estate financing including the Tata Realty deal, social financing supporting education and low-cost housing, and green financing, including the Aseem Infrastructure transaction. Data centres in India are expanding at scale. As a regional bank, DBS has been very active in this sector.
Do sustainability practices influence borrower valuations?Broader investor participation strengthens pricing, enhances book quality and attracts stable, long-term investors in the fixed-income market. While sustainability disclosures may not directly alter equity valuations, they significantly improve investor conviction in corporate strategy, transition plans and technology roadmaps—enhancing long-term business outlook. These practices indirectly improve a corporate’s attractiveness by signalling a credible long-term strategy that supports business continuity over decades—covering business transformation, new technologies, climate resilience and new energy models.
As featured in Moneycontrol
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