Companies of all sizes in Singapore will get more support in securing green and sustainability-linked loans, with a new grant scheme launched by the Monetary Authority of Singapore (MAS). The initiative will encourage banks to develop frameworks so small and medium-sized enterprises (SMEs) can access such financing more easily. Green loans are those that help finance new or existing green projects, while sustainability-linked loans provide price incentives for borrowers to achieve sustainability performance targets. To this end, the new grant scheme will cover up to $100,000 of a borrower’s expenses in validating the green and sustainability credentials of a loan over a three-year period. MAS managing director Ravi Menon said: "Loans are a key source of financing across Asia - be it for individuals, SMEs or large corporates. Therefore, there is significant opportunity to encourage firms across different industries to transition to more sustainable practices through green and sustainability-linked loans. MAS' grants for green loans and bonds are an important part of the green finance ecosystem that Singapore is building - to support Asia's pivot towards a sustainable future."

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The Straits Times