ESG's new green financing scheme to provide 70% risk-sharing of loans

ENTERPRISE Singapore (ESG) has rolled out an enhanced financing scheme to help companies developing green technologies and solutions to capture growing opportunities in the green economy.

The Enterprise Financing Scheme-Green (EFS-Green) - effective till March 31, 2024 - will provide for risk-sharing of 70 per cent to support lending by partner financial institutions to project developers, system integrators and technology and solution enablers in clean energy, circular economy, green infrastructure and clean transportation sectors, said ESG in a media statement on Sunday.

The scheme is an enhancement of the existing Enterprise Financing Scheme, and comes as part of the broader Enterprise Sustainability Programme (ESP) launched last Friday by Minister for Trade and Industry Gan Kim Yong.

EFS-Green covers a range of financing needs, including developmental capital, fixed assets, trade, project, venture debt and mergers and acquisition.

It will be supported by partner financial institutions including DBS, HSBC, OCBC and UOB. These institutions have developed green and sustainability financing frameworks for SMEs and enterprises approved by the Monetary Authority of Singapore's recognised consultants, said ESG.

Png Cheong Boon, ESG chief executive officer, said: "Demand for green solutions is set to grow globally as countries and industries strive to set practices and targets to control the adverse impact that emissions have on global warming. EFS-Green is meant to enable green technology innovators in Singapore to have easier access to green financing, in order to create ever-evolving, ever-improving solutions."