Toyota's financial services arm signs S$150m transition loan with DBS to grow EV sales

THE Singapore subsidiary of Toyota's financial services arm has inked a S$150 million transition loan with DBS, net proceeds of which will be used to grow Toyota's electric vehicle (EV) sales in Singapore.

The transition loan comes in the form of a sustainability-linked revolving credit facility, DBS said in a press statement on Wednesday.

The subsidiary, Toyota Financial Services Singapore (TFSSG), was incorporated in January 2020. It is a subsidiary of Toyota Financial Services Corporation (TFSC), which is wholly owned by Toyota Motor Corporation in Japan.

TFSC, which offers financial and mobility solutions, has a presence in more than 40 countries or locations.

DBS group head of corporate banking Adrian Chai said 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.

"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," he added.

Vinod Cherumadathil, chief executive of TFSSG, said the sustainability-linked loan facility with DBS demonstrates the company's collective commitment towards global decarbonisation efforts with a focus to enhance access and adoption of more EVs in Singapore.

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