UOB launches integrated green financing solution for EVs

UOB U11 on Thursday launched an integrated green financing solution for electric vehicle (EV) businesses and end-users. This includes automotive brand owners and car dealers.

Named U-Drive, the solution provides green banking facilities including trade financing, dealer stock financing, as well as UOB's Green Hire Purchase Loan and Go Green Car Loan products.

Through U-Drive, the bank wants to promote the development of the EV sector and simplify the transition to green vehicles, said Karunia Tjuradi, UOB's head of sector solutions.

UOB will pioneer the new solution with Hong Seh Evolution (HSEV), the authorised distributor of commercial EVs from Dongfeng Sokon Automobile and dealer of BYD T3 electric vans in Singapore.

The U-Drive green facilities UOB provides to HSEV will give the latter greater working capital flexibility in managing its commercial EV sales and inventory.

Both parties are also working together to provide free charging credits to end-users who purchase new commercial EVs from HSEV with a car loan from UOB. This is to drive the adoption of commercial EVs in Singapore.

U-Drive is part of UOB's suite of sustainable financing solutions under its Smart City Sustainable Finance Framework.

Interest in green financing for EVs has grown this year among local banks, with OCBC and DBS introducing their own offerings earlier this year.

OCBC in February partnered with local EV solutions firm Charge+ to encourage the widespread adoption of EV usage among its clients in Singapore.

DBS meanwhile, launched its green car loan product in March for customers purchasing new and used electric and hybrid vehicles, with an interest rate of 1.68 per cent per annum. DBS is also Tesla's preferred financing partner in Singapore.

READ MORE: Singapore banks latch onto electric-car market