mas.gov.sg Green & Sustainability-Linked Loans Grant Scheme Singapore

• Company or financial institution based onshore or offshore
  (Includes international organisations, such as the International Finance Corporation or World Bank, but excludes sovereigns.)

• Loan tenure of at least 3 years
• Loan size of at least S$20 million (or equivalent in another currency)
• New green loan or SLL (excludes refinancing of existing loans already supported by the grant)

• The Qualifying Borrower may apply for the grant each time there is a Qualifying Loan

(External review refers to a Second Party Opinion, verification, certification or rating)

• External review to demonstrate alignment of the loan with internationally-recognised green loan principles

• External review to demonstrate (i) alignment with internationally-recognised Sustainability-Linked Loan principles, and that (ii) minimally 2 of the total SPTs need to contribute to environmental objectives of the UN Sustainable Development Goals or Sustainability Linked Loan Principles
• Alternatively, the borrower can attain an ESG evaluation score

In addition, Qualifying Borrowers must fulfil the following requirement post-origination:

• External review (on an annual basis, for the 3-year funding period) to verify the attainment of the Qualifying Borrower’s SPTs

• More than 50% gross revenue from the loan is attributable to the bank in Singapore (which should be a Financial Sector Incentive (FSI) recipient)
• Sustainability advisory and assessment work of the loan to be performed in Singapore 

  Note: Assessment work refers to evaluating the eligibility of projects and reviewing the allocation of proceeds for green loans based on information reported by the borrower. For SLLs, this includes identifying or assessing SPTs and reviewing the borrower’s actual performance against these SPTs

Note: Sustainability advisory and assessment service providers includes entities that provide services such as the development of loan frameworks and SPTs, external review, second party opinion, verification, certification, rating, advisory, and reporting.

• Development of a loan framework or Sustainability Performance Targets (Loan Frameworks can include development of new loan frameworks or enhancement of corporates’ existing framework. For instance, corporates may seek to update their loan framework to reflect new market guidance, or to expand type of projects or activities it wishes to fund through its green and sustainable financing)
• Pre-and post- loan origination external review (SPO, verification, certification, rating) based on internationally-recognised green and/or Sustainability-Linked Loan principles
• Attaining an ESG evaluation score
• Reporting on the use of proceeds of the loan and their expected impact, or SPT achievement and impact

Note: For clarity, applicants with loans originated from 1 October 2020 onwards can apply for the scheme from 1 January 2021 onwards. Applicants need to submit applications no later than 3 months from the date of loan origination.

• Financial Sector Incentive (“FSI”) company In Singapore

• Green & Sustainability-Linked Loan frameworks which include green loans and/or Sustainability-Linked Loans (excludes enhancements of existing frameworks already supported by the grant)
• Green & Sustainability-Linked Loan Frameworks for SMEs & Individuals are defined as frameworks for (i) individuals or firms with annual revenue of up to S$100 million, and (ii) loan sizes less than S$20 million

• Qualifying Institutions may apply for the grant each time they have a Qualifying Framework

External review requirements

(External review refers to a Second Party Opinion, verification, certification or rating)

• External review to demonstrate its alignment with internationally-recognised green or Sustainability-Linked Loan principles, or creation of the framework in consultation with sustainability advisory and assessment service providers where the framework is aligned with internationally-recognised green or Sustainability-Linked Loan principles

In addition, Qualifying Institutions must fulfil the following requirements post-origination:

• External review (on an annual basis, for the 3 year funding period) to demonstrate continued alignment of the framework with internationally-recognised green or Sustainability-Linked Loan principles

• Sustainability advisory and assessment work of the loans originated from the framework to be performed in Singapore.
  Note: Assessment work refers to evaluating the eligibility of projects and reviewing the allocation of proceeds for green loans based on information reported by the borrower. For SLLs, this includes identifying or assessing SPTs and reviewing the borrower’s actual performance against these SPTs
• Design and conceptualisation of the framework must be performed in Singapore

Note: Sustainability advisory and assessment service providers include entities that provide services such as the development of loan frameworks and SPTs, external review, second party opinion, verification, certification, rating, advisory, and reporting

• Development of a green or Sustainability-Linked Loan framework
• External review (SPO, verification, certification) done on the framework based on any internationally-recognised green or Sustainability-Linked Loan principles
• Reporting on the green or Sustainability-Linked Loan framework, loans financed and their expected impact

• Green & Sustainability-Linked Loan Frameworks for SMEs and Individuals: 90% co-funding capped at S$180,000 of total costs, over a period of 3 years
• Other Green & Sustainability-Linked Loan Frameworks: 60% co-funding capped at S$120,000 of total costs, over a period of 3 years

Note: For clarity, applicants with frameworks launched from 1 October 2020 onwards can apply for the scheme from 1 January 2021 onwards. Applicants need to submit applications no later than 3 months from the date when the framework was launched.