Enterprise Singapore will provide 70% risk-share for loans from financial institutions to domestic firms to reduce waste and greenhouse gas emissions.
“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,” said Png Cheong Boon, Enterprise Singapore’s chief executive officer.
The companies have to fall under the category of project developers, system integrators, technology and solution enablers from the sectors of clean energy, circular economy, green infrastructure, and clean transportation sectors.
The scheme is open for applications until 31 March 2024.
The maximum loan quantum ranges from S$3m ($2.2m) to S$50m and has a maximum repayment period of up to 20 years, depending on the loan type.
The borrower is responsible to fully repay the loan amount, but when defaults occur, the financial institutions can make a claim against Enterprise Singapore for the unrecovered amount in proportion to the risk-share.
The EFS-Green will be supported by partner financial institutions, including DBS, HSBC, OCBC, and UOB, which have developed green and sustainability financing frameworks for enterprises.
Enterprise Singapore also launched the Enterprise Sustainability Programme last week to set aside S$180m to support 6000 Singapore businesses on sustainability initiatives, and to capture new opportunities in the green economy.