Starting January 1, the program will help businesses pay for an independent assessment of green and sustainable loan credentials. MAS also said the grant would encourage banks to expand these loans for small and medium-sized businesses.
The grant will pay up to S $ 100,000 ($ 75,000) for business expenses related to independent sustainability assessments and advice on developing green and sustainable frameworks and goals, obtaining external reviews and communicating the impact of the loan on sustainability.
To encourage banks to develop green and sustainability-linked loans, MAS will pay up to 60% of the cost of assessment, advisory and reporting services, up to S $ 120,000 ($ 89,000).
MAS will also cover 90% of bank expenses related to loans to small and medium-sized businesses and individuals, capped at S $ 180,000 (US $ 134,000).
The scholarship part of the MAS ‘ green finance action plan, which also includes $ 2 billion in funding to support the announced green finance in 2019. MAS published seven sustainable finance initiatives until now.
Nicolas hanna, an expert from Pinsent Masons, the firm behind Out-Law, said: “Singapore has once again taken the initiative to champion a new financial product to support green and sustainable executives. This will be welcomed by companies promoting clean energy in the region. Singapore’s new incentive program will no doubt attract companies looking to establish a hub here and I see applications from a number of my interested wind, solar and biomass clients. “