DBS launches $92m green loan facility for Envision Energy to develop wind turbine farm in China
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As at end-2023, DBS' green financing portfolio has grown 62 per cent year on year.
ST PHOTO: LIM YAOHUI
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SINGAPORE - DBS, in a tie-up with Envision Energy, on Aug 21 announced a 500 million yuan (S$92 million) green loan facility for the wind turbine provider to develop a 100-megawatt wind turbine farm in Henan province, located in north-eastern China.
When completed, the project is expected to generate about 270 gigawatt hours of renewable energy. This can power 90,000 households and reduce annual carbon emissions by 212,600 tonnes, DBS said.
The loan will be issued under the People’s Bank of China’s carbon emissions reduction facility.
It is the first transaction by a South-east Asian bank in this programme, which enables participating banks to offer low-cost loans to fund sustainable development projects in China, across sectors such as clean energy, environmental protection and carbon emissions reduction technologies, among others.
As at end-June 2024, participating banks have extended more than 547 billion yuan in loans.
Mr Kelvin Wong, head of energy, renewables and infrastructure at DBS’ institutional banking group, noted that the energy sector accounted for almost 90 per cent of China’s greenhouse gas emissions.
The programme could reduce the cost of capital for green projects amid the country’s goal to achieve carbon neutrality by 2060, Mr Wong added.
“This will help Envision Energy expand clean energy capacity, reduce carbon emissions and contribute to the achievement of the ‘dual-carbon’ goals,” DBS China chief executive Ginger Cheng said of the latest green loan facility.
DBS China served as the sole green finance adviser for this loan to ensure compliance with the China-European Union Common Ground Taxonomy.
As at end-2023, its green financing portfolio has grown 62 per cent year on year. THE BUSINESS TIMES
