DBS can promote sustainable development through such loans by pegging the interest rate of a credit facility to a series of environmental, social and governance (ESG) performance metrics. If pre-determined targets are achieved, the interest of the loan will be reduced. DBS has collaborated on such loans with organisations such as:
Fortune REIT secures its first sustainability-linked loan of HK $1 billion from DBS
Swire Pacific secures first sustainability-linked loan of HK 2 billion from DBS.
Hongkong Land secures its first sustainability-linked loan of HK 1 billion from DBS.
DBS finances Link’s maiden sustainability-linked loan of AUD 212 million, which is linked to the Global Real Estate Sustainability Benchmark (GRESB).
New World Development
DBS Hong Kong finances New World Development’s first sustainability-linked loan of HKD 1 billion in equal tranches of HKD 500 million each for a term loan and a revolving loan.
DBS finances the first-of-its-kind SDG Innovation Loan to accelerate innovative solutions to promote the UN SDGs.
Louis Dreyfus Company (LDC)
DBS is the first Asian bank to be appointed as a co-sustainability coordinator for LDC’s first sustainability-linked syndicated loan in Asia. This is a three-year USD 650 million revolving credit facility where the interest rate will be linked to LDC’s performance in meeting reduction targets in CO2 emissions, electricity and energy consumption, water usage, and solid waste sent to landfills.
Sumatera Timberindo Industry
First of its kind export-financing sustainability-linked loan in Indonesia. DBS evaluated the loan based on a target to obtain timber and raw materials from sources certified by the Forest Stewardship Council (FSC).
This is the first ESG-linked loan for an SME in Singapore. Chew’s will enjoy lower interest rates if it meets Humane Farm Animal Care (HFAC) standards at the new farm with larger cage-free facilities.
This is a three-year, NTD two billion sustainability-linked loan with AU Optronics, marking a milestone as it is the first sustainability-linked loan in Taiwan and the first of its kind for an IT company in Asia Pacific.
This is a two-year sustainability-linked USD 100 million revolving credit facility.
This is three-year sustainability-linked USD 500 million revolving credit facility, and Asia’s first sustainability-linked club loan.