• About Us
    • Fact Checking Policy
    • Ownership & funding information
    • Volunteer
  • Subscribe
  • Letter submission
    • Submissions Policy
  • Contact Us
The Online Citizen Asia
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Letters
    • Comments
  • Current Affairs
    • Singapore
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Arts & Culture
    • Consumer Watch
    • NGO
    • Lifestyle
    • Travel
  • Politics
    • Civil Society
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
No Result
View All Result
The Online Citizen Asia
No Result
View All Result

HSBC introduces new green loan to make green finance cheaper and easier for SMEs

by The Online Citizen
16/03/2020
in Environment, Finance
Reading Time: 3 mins read
0

Photo: news.efinancialcareers.com

In an effort to make green finance less costly and easier for small and medium enterprises (SMEs), HSBC Singapore is introducing a new green loan that will accept applications in accordance with Singapore industry certifications.

With the new green loan in place, there will no longer be a need for the usual green finance frameworks.

HSBC Singapore’s Head of Business Banking Ng Li Lian spoke to The Business Times on Monday (16 March) at the launch of the SME Green Loan. Mr Ng said, “We hear a lot of interest from SME clients in green loans, but we see limited action – this is not for want of trying, but comes down to accessibility… SMEs can’t afford the typical costs or time associated with green finance, with management teams already spread thin as they focus on the day-to-day running of the business.”

HSBC, among other banks, normally have corporates construct a bespoke green finance framework, following which green loans are applied for. This is so that the loan proceeds will be used in accordance with internationally recognised green standards. The framework, however, can cost “thousands of dollars and weeks of development” to obtain external reviews and assess entire business models, Ms Ng remarked.

Larger corporates could raise multiple green financing instruments such as green bonds and green loans under a single framework over several years, but for SMEs with less diverse funding requirements, the framework may not be as applicable.

As a result, the new loan will allow substantial cost and time saving without the need for green finance frameworks because “for SMEs, it’s the make or break in utilising green finance,” Ms Ng added.

The first of its kind in the Singapore market, as HSCB claimed, applications for the new green loans from businesses will be received by the bank after adhering to industry certifications such as (1) Singapore Environment Council – Singapore Green Labelling Scheme (SGLS) and eco-certification schemes; (2) Building and Construction Authority – Green & Gracious Award, and Green Mark Scheme (GoldPLUS and Platinum); (3) Singapore Green Building Council – product and services certification schemes; and (4) Green-e – Renewable Energy Certification.

The validity of the use of loan proceeds will be assessed by the certifications. HSBC will incorporate more into the list of accepted applications as more certifications are developed in Singapore.

At a minimum cap of US$350,000, the green loan will be issued on a term basis. The amount will be denominated either in US dollars or Singapore dollars. Applicants will undergo the usual credit-review process by HSBC.

There has been an increase green finance from SMEs, from firms that have become more aware of the need for sustainability in their business models as well as those looking to create new business models in light of the growth in environmental awareness.

Based on HSBC’s 2019 Navigator survey, 64 per cent of the 200 Singapore firms that responded, with half of them being SMEs, stated that they believe they have a part to play to realise the United Nations’ Sustainable Development Goals.

“Hundreds of companies are pursuing green initiatives, ranging from the development of green products (as governed by the SGLS schemes), green F&B outlets, as well as the purchase of lower-emission or energy-efficient equipment…Ultimately, every business has a part to play in transitioning to a low-carbon economy – we already have interest from clients in the electric vehicle, engineering or manufacturing, clean water and recycling sectors,” Ms Ng concluded.

For just US$7.50 a month, sign up as a subscriber on The Online Citizen Asia (and enjoy ads-free experience on our site) to support our mission to transform TOC into an alternative mainstream press.

Related Posts

Nine missing after fishing boat capsizes in South Korea
AFP

Nine missing after fishing boat capsizes in South Korea

05/02/2023
Piercings and prayer: Malaysian Hindus celebrate Thaipusam
AFP

Piercings and prayer: Malaysian Hindus celebrate Thaipusam

05/02/2023
Grab SG appoints PAP MP Tin Peiling as director of public affairs and policy
Politics

Netizens question Tin Pei Ling’s conflict of interest as Grab’s director of Public Affairs and Member of Parliament

05/02/2023
Why is Gautam Adani’s Indian empire in turmoil?
AFP

Indian regulator reassures investors after Adani rout

05/02/2023
Cognizant India transfers staff to work in Singapore as recently as this year
Labour

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

05/02/2023
Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police
Indonesia

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

04/02/2023
Subscribe
Connect withD
Login
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
Notify of
Connect withD
I allow to create an account
When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. We also get your email address to automatically create an account for you in our website. Once your account is created, you'll be logged-in to this account.
DisagreeAgree
0 Comments
Inline Feedbacks
View all comments

Latest posts

Nine missing after fishing boat capsizes in South Korea

Nine missing after fishing boat capsizes in South Korea

05/02/2023
Piercings and prayer: Malaysian Hindus celebrate Thaipusam

Piercings and prayer: Malaysian Hindus celebrate Thaipusam

05/02/2023
Grab SG appoints PAP MP Tin Peiling as director of public affairs and policy

Netizens question Tin Pei Ling’s conflict of interest as Grab’s director of Public Affairs and Member of Parliament

05/02/2023
Why is Gautam Adani’s Indian empire in turmoil?

Indian regulator reassures investors after Adani rout

05/02/2023
Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

05/02/2023
Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

Family of student killed in accident involving retired police officer, calls for transparency from Indonesian police

04/02/2023
【财政预算案2021】2020年预算赤字达649亿元 占国内生产总值13.9%

China’s mega-rich move their wealth, and partying, to Singapore

04/02/2023
2024 Olympic torch relay to start in Marseille

2024 Olympic torch relay to start in Marseille

03/02/2023

Trending posts

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

Former Singaporean shares change of life in Australia with annual pay of S$80,000 as a plumber

by Yee Loon
30/01/2023
25

...

They have done a fine job of confusing us about the jobs situation

They have done a fine job of confusing us about the jobs situation

by Augustine Low
01/02/2023
47

...

Adani’s brother runs SG company and registers as director with local ID

Adani’s brother runs SG company and registers as director with local ID

by Correspondent
03/02/2023
25

...

Excessively charging for an essential need, and calling it affordable because people still can pay for it?

by Terry Xu
31/01/2023
40

...

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

Singapore Law Watch removes commentary on CPIB’s decision to not prosecute former Keppel executives

by The Online Citizen
02/02/2023
19

...

Cognizant India transfers staff to work in Singapore as recently as this year

Local IT grads can’t find jobs while engineers constantly transferred from India to work in SG under CECA

by Correspondent
05/02/2023
20

...

March 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
« Feb   Apr »

The Online Citizen is a regional online publication based in Taiwan and formerly Singapore’s longest-running independent online media platform.

Navigation

  • Editorial
  • Commentaries
  • Opinion
  • Politics
  • Community

Support

  • Contact Us
  • Letter submission
  • Membership subscription

Follow Us

  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • Fact Checking Policy
  • Privacy Policy

© 2022 - 2023 The Online Citizen Asia

No Result
View All Result
  • Opinion
    • Editorial
    • Commentaries
    • Comments
  • Current Affairs
    • Malaysia
    • Indonesia
    • China
    • ASEAN
    • Asia
    • International
  • Finance
    • Economics
    • Labour
    • Property
    • Business
  • Community
    • Civil Society
    • Arts & Culture
    • Consumer Watch
    • NGO
  • Politics
    • Parliament
    • Transport
    • Education
    • Environment
    • Health
    • Housing
  • Law & Order
    • Legislation
    • Court Cases
  • Lifestyle
    • Travel
  • Subscribers login

© 2022 - 2023 The Online Citizen Asia

wpDiscuz