DBS Bank tops Bloomberg Asia (ex Japan) League Table for Green Loans
Singapore.26 Aug 2020
Extends USD1.36 billion in green loans to support companies in advancing corporate sustainability
Singapore, 26 Aug 2020 - DBS Bank has ranked first in Bloomberg’s Asia (ex Japan) league tables for green loans for its role as Mandated Lead Arranger (MLA) from 1 January this year to 25 August[1].
During this period, DBS extended USD1.36 billion worth of green loans across eight deals to finance eligible green projects such as renewable energy projects and green buildings. The projects aim to address key areas of environmental concern such as climate change, natural resources depletion and loss of biodiversity, among others. Around one third of these green loans complied with the additional and stricter criteria and guidelines of the Green Loan Principles under the Loan Market Association and the Asia Pacific Loan Market Association[2].
DBS has been involved in several landmark transactions that promote sustainable development including: M+S’ SGD1.95 billion green loan for Marina One which is the largest to date by a real estate company in Asia; Guocoland’s SGD730 million green loan for the development of a new luxury residential cum commercial development at Tan Quee Lan Street; and Chenya Energy’s NTD7.2bn project finance facility to develop the Changhua 1 & 2 180MW floating solar project which is Taiwan’s largest.
Yulanda Chung, Head of Sustainability, Institutional Banking, DBS said that responsible banking is a key pillar of DBS’ approach to sustainability and is heartened that more companies are now seeking to advance their corporate sustainability agenda through sustainable financing.
“In 2020, we continue to see a good mix of sustainable financing deals across the markets we operate in, and across sectors. The green loan market continues to be dominated by borrowers in the real estate sector, but we are now involved in others such as financing renewable energy equipment makers and electric vehicle battery plant. The reason for the good momentum is that customers increasingly want to incorporate sustainable practices into their overall business strategy,” Chung said.
To incentivise clients to be more sustainable, DBS also structures various forms of sustainable financing solutions such as sustainability linked loans. These loans are based on the companies’ environmental, social and governance (ESG) objectives to support and advance environmentally and socially sustainable economic activity. The bank incentivises the sustainability performance of the company by offering a reduction in interest rates when the latter achieves predetermined ESG targets. Sustainability linked loans give borrowers the flexibility to use the loan for whatever purpose they see fit, unlike green loans whose proceeds are intended only for earmarked green activities.
“Clients are able to leverage such incentives for meaningful sustainability impact, while we play our part as a purpose-driven bank, to motivate this positive transition and strengthen our banking relationships,” she added.
The development of Singapore’s sustainable financing landscape continues to make steady headway, driven by supportive policies from regulators and broader acceptance of green financial instruments by customers. Testament to this growing traction, DBS concluded 35 sustainable financing transactions amounting to about SGD 5 billion in 2019, translating to an increase of approximately 60% from SGD 3.1 billion the year before. To drive further progress, DBS advocates scaling up transition finance[3] and supporting clients to adopt incremental but instrumental solutions – all of which are necessary to broaden and deepen the market.
Over the last two-and-a-half years, DBS has done around 100 sustainable financing deals worth SGD12 billion which include green loans and sustainability-linked loans.
APPENDIX
Bloomberg League table for APAC ex Japan Green Use of Proceeds (UoP) Loans
Role: Mandated League Arranger (the most prevailing league table, counted by syndicated/club deals and by the role a bank played)
[1]Refer to APPENDIX
[2]https://www.aplma.com/en/gsl
[3]https://www.dbs.com/newsroom/DBS_launches_worlds_first_sustainable_and_transition_finance_framework_and_taxonomy_to_help_clients_advance_on_sustainability_agenda
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. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 11 consecutive years from 2009 to 2019.
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. The bank acknowledges the passion, commitment and can-do spirit in all of our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
During this period, DBS extended USD1.36 billion worth of green loans across eight deals to finance eligible green projects such as renewable energy projects and green buildings. The projects aim to address key areas of environmental concern such as climate change, natural resources depletion and loss of biodiversity, among others. Around one third of these green loans complied with the additional and stricter criteria and guidelines of the Green Loan Principles under the Loan Market Association and the Asia Pacific Loan Market Association[2].
DBS has been involved in several landmark transactions that promote sustainable development including: M+S’ SGD1.95 billion green loan for Marina One which is the largest to date by a real estate company in Asia; Guocoland’s SGD730 million green loan for the development of a new luxury residential cum commercial development at Tan Quee Lan Street; and Chenya Energy’s NTD7.2bn project finance facility to develop the Changhua 1 & 2 180MW floating solar project which is Taiwan’s largest.
Yulanda Chung, Head of Sustainability, Institutional Banking, DBS said that responsible banking is a key pillar of DBS’ approach to sustainability and is heartened that more companies are now seeking to advance their corporate sustainability agenda through sustainable financing.
“In 2020, we continue to see a good mix of sustainable financing deals across the markets we operate in, and across sectors. The green loan market continues to be dominated by borrowers in the real estate sector, but we are now involved in others such as financing renewable energy equipment makers and electric vehicle battery plant. The reason for the good momentum is that customers increasingly want to incorporate sustainable practices into their overall business strategy,” Chung said.
To incentivise clients to be more sustainable, DBS also structures various forms of sustainable financing solutions such as sustainability linked loans. These loans are based on the companies’ environmental, social and governance (ESG) objectives to support and advance environmentally and socially sustainable economic activity. The bank incentivises the sustainability performance of the company by offering a reduction in interest rates when the latter achieves predetermined ESG targets. Sustainability linked loans give borrowers the flexibility to use the loan for whatever purpose they see fit, unlike green loans whose proceeds are intended only for earmarked green activities.
“Clients are able to leverage such incentives for meaningful sustainability impact, while we play our part as a purpose-driven bank, to motivate this positive transition and strengthen our banking relationships,” she added.
The development of Singapore’s sustainable financing landscape continues to make steady headway, driven by supportive policies from regulators and broader acceptance of green financial instruments by customers. Testament to this growing traction, DBS concluded 35 sustainable financing transactions amounting to about SGD 5 billion in 2019, translating to an increase of approximately 60% from SGD 3.1 billion the year before. To drive further progress, DBS advocates scaling up transition finance[3] and supporting clients to adopt incremental but instrumental solutions – all of which are necessary to broaden and deepen the market.
Over the last two-and-a-half years, DBS has done around 100 sustainable financing deals worth SGD12 billion which include green loans and sustainability-linked loans.
APPENDIX
Bloomberg League table for APAC ex Japan Green Use of Proceeds (UoP) Loans
Role: Mandated League Arranger (the most prevailing league table, counted by syndicated/club deals and by the role a bank played)
| Rank | Bank | Volume (USD m) | No. of deals | Table share (%) |
| 1 | DBS Group | 1,360 | 8 | 12.91 |
| 2 | Oversea-Chinese Banking Corp | 993.11 | 7 | 9.43 |
| 3 | KB Financial Group Inc | 508.74 | 3 | 4.83 |
| 4 | HSBC | 428.16 | 5 | 4.06 |
| 5 | Standard Chartered Bank | 388.74 | 3 | 3.69 |
| 6 | Korea Development Bank | 357.56 | 3 | 3.39 |
| 7 | L&T Financial Services | 280.39 | 2 | 2.66 |
| 8 | Mitsubishi UFJ Financial Group Inc | 255.16 | 3 | 2.42 |
| 9 | Sumitomo Mitsui Financial | 252.81 | 4 | 2.40 |
| 10 | Sumitomo Mitsui Financial | 252.81 | 4 | 2.40 |
League Table (Top 10), as at 25 August 2020
Source: Bloomberg
[1]Refer to APPENDIX
[2]https://www.aplma.com/en/gsl
[3]https://www.dbs.com/newsroom/DBS_launches_worlds_first_sustainable_and_transition_finance_framework_and_taxonomy_to_help_clients_advance_on_sustainability_agenda
[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. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 11 consecutive years from 2009 to 2019.
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. The bank acknowledges the passion, commitment and can-do spirit in all of our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
