DBS raises sustainable finance target to $50b by 2024
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DBS Bank has raised its sustainable finance target for 2024 to $50 billion - well above its previous $20 billion target for the same year.
The move stems from more companies seeking to advance their corporate sustainability agenda through sustainable financing, said DBS yesterday.
"We thought our earlier target of $20 billion... would be a stretch and were greatly heartened at the level of customer interest in... adopting sustainability in their strategies," said Ms Tan Su Shan, DBS' group head of institutional banking.
She noted that many companies have increased their environmental, social and governance commitments since the Covid-19 pandemic, with a marked rise in sustainable financing.
The bank said it continues to see a good mix of sustainable financing deals. It is also involved in financing renewable energy equipment makers and electric vehicle battery plants, although the green loan market remains dominated by real estate borrowing.
Ms Tan noted: "To remain relevant, companies will need to balance profits with meeting the needs of society... We want to do our part to help address key areas of environmental and social concerns and support Singapore in its ambition to be a green finance hub."
DBS has concluded over 100 sustainable financing deals worth about $17 billion in all since 2018.
Its landmark transactions last year include the US$1.11 billion (S$1.5 billion) dual-tranche green project bond by Star Energy Geothermal, PSA Marine's three-year €30 million (S$48.1 million) equivalent loan and the €500 million Korea Housing Finance Corporation Covid-19 social bond.
OCBC Bank said in June that it plans to expand its sustainable finance portfolio to $25 billion by 2025.
The bank cracked its 2022 goal of $10 billion in sustainable finance in the first quarter of last year, about two years ahead of its target.
THE BUSINESS TIMES
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DBS' LANDMARK GREEN TRANSACTIONS LAST YEAR
US$1.11b Dual-tranche green project bond by Star Energy Geothermal
€30m PSA Marine's three-year equivalent loan
€500m Korea Housing Finance Corporation Covid-19 social bond
