The green loan provided by DBS will help Envision Energy develop a 100-megawatt wind turbine farm in the Henan province in northeastern China.
Singapore-based DBS bank announced an RMB 500 million (SGD 92 million) green loan facility in partnership with Envision Energy, a Chinese multinational corporation headquartered in Shanghai that provides wind turbines and energy management software.
The loan will finance a 100-megawatt wind power project expected to generate 270 gigawatt hours of renewable energy for the national grid and avoid an estimated 212,600 tonnes of carbon emissions.
DBS China served as the sole green finance advisor for this loan. The institution is the first Southeast Asian bank to successfully transact under the People’s Bank of China’s (PBOC) Carbon Emission Reduction Facility.
PBOC Carbon Emission Reduction Facility (CERT) is a monetary policy tool introduced by the People’s Bank of China to support the country’s efforts to reduce carbon emissions and transition to a more sustainable economy. It was established in November 2021 as part of China’s broader climate goals – achieving peak carbon emissions by 2030 and carbon neutrality by 2060.
To subsidise China’s transition efforts, the PBOC provides financial institutions with funds equal to 60% of a loan’s principal at an annual interest rate of 1.75%. The CERT programme enables participating banks to offer low-cost loans to the companies involved in sustainable development projects in China across key environmental sectors e.g. clean energy, energy saving, environmental protection, and carbon emission reduction technologies.
“We are honoured to be able to leverage this Carbon Emission Reduction Facility by PBOC, enabling us to provide financial support for Envision Energy’s wind power project in Puyang, Henan. This will help Envision Energy expand clean energy capacity, reduce carbon emissions, and contribute to the achievement of the ‘dual carbon’ goals. As a leader in green finance in the ASEAN region, DBS Bank will further leverage its capabilities to continue supporting green and low-carbon development, contributing to China’s high-quality sustainable economic development.”
Ginger Cheng, DBS China CEO
Sustainability continues to be an increasingly important focus point in China. For DBS China, that translates to its green financing portfolio growing 62% year-on-year as of 2023.
Earlier this year, transport company ComfortDelGro Corporation received an SGD 100 million ($73 million) green loan from DBS to decarbonize its UK bus fleet, operated by the firm’s wholly-owned subsidiary, Metroline — the fourth largest scheduled bus operator in London.
