Introduction
- The Monetary Authority of Singapore (“MAS”) announced launch of the Green and Sustainability-Linked Loan Grant Scheme (“GSLS”) in November 2020.
- The GSLS is the first of its kind globally.
- In 2023, the MAS made a commitment of S$15 million to enhance and extend the GSLS until December 2028.
- Objective of GSLS is to aid MAS in its aim to develop green and sustainable financial markets and products to support Asia’s transition to a low carbon future.
| Sustainable Loan Grant Scheme | Supports corporates of all sizes to obtain sustainable and transition financing by offsetting the expenses of engaging independent service providers. |
| Who is eligible? | Open to companies and financial institutions based onshore/offshore. |
| What are the loan terms? | Loan tenure ≥3 years, size ≥S$20M. Funding period 3 years. |
| What instruments are in scope? |
Qualifying instruments: green/ social/ sustainability/ transition /sustainability-linked loans. |
| What are the qualifying borrower requirements? |
|
| What expenses are reimbursable? |
|
| What are the grant support details? |
|
| What are the revenue requirements? |
|
*Please note that the above information is based on available sources, and for the most accurate and up-to-date details, it is recommended to refer to the official MAS website or speak to our HM consultants.
Considering the Potential Benefits of Applying for the GSLS
- Financial Incentives – Obtaining the GSLS helps to offset the costs associated with implementing sustainable practices, making it more affordable for businesses to adopt green technologies and processes.
- Early-mover advantage – Term of this grant was renewed in 2023 and is available until 2028. An earlier applicant may gain significant competitive advantage if they obtain the loan and therefore adopt and enhance sustainable technologies and practices prior to other industry players.
- Regional mobilisation – Financial institutions have introduced innovative green and sustainability-linked frameworks to support the scheme and offers direct financing to activities that promote sustainable development not only in Singapore but also in the region. This allows for regional integration and standardisation of green financing processes and regulatory requirements and further broadens the offering to corporates with a Singapore nexus whose key business may be operating in another part of the region.
- Reputation and Branding – This is an opportunity to showcase the synergy of a successful applicant’s business with the sustainability ecosystem Singapore is scaling up with regional partners. Businesses can also enhance their brand image and attract socially responsible investors.
- Access to Capital – The grant scheme allows businesses to access more capital for their sustainability projects.
- Long-Term Cost Savings and Risk Mitigation – The GSLS facilitates the adoption of sustainability practices and projects, enabling businesses to reap the financial benefits in the long run, scale up their business more efficiently, and mitigate against operational risks early on.
For further information, contact:
Cora Ang: Partner | [email protected] (https://hmstrategy.com/)
Disclaimer: The material in this post represents general information only and should not be relied upon as legal advice. Holland & Marie Pte. Ltd. is not a law firm and may not act as an advocate or solicitor for purposes of the Singapore Legal Profession Act.
