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UOB becomes first bank in Asia to launch smart city finance framework


UOB on Thursday kicked off the UOB Smart City Sustainable Finance Framework (UOBSCSFF), the first financing framework to be launched by a bank in Asia that makes sustainable financing more easily accessible to companies contributing to the creation of smart cities.

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Aligned with the United Nations’ Sustainable Development Goals (SDGs), UOB’s framework is supported via Singapore’s Green and Sustainability-Linked Loan Grant Scheme.
UOB’s framework sets out the criteria corporate and institutional clients must meet when accessing services from green or sustainability-linked loans and trade finance facilities to other banking products.
According to the criteria, the company is required to have a clear sustainability strategy and objectives to achieve their targets and must use the funds to further their sustainability agenda.
Businesses are also required to demonstrate how their activities promote a better quality of life such as through the use of renewable energy, construction of green buildings, improved energy efficiency, green transportation, sustainable water and waste management and climate change adaptation. UOB will monitor the company’s use of the loan and the environmental and social impact its business activities have on an annual basis.
Companies committed to building sustainable and smart cities can apply for sustainable financing without having to develop their own financing framework which can take time and resources. This means that they can focus their resources on contributing to a better environment for all.
Frederick Chin, head of UOB’s Group Wholesale Banking and Markets, said: “The UN estimates that US$2.5 trillion is required annually for developing countries to bridge the financing gap in achieving the SDGs by 2030. Financial institutions can and must play a part, together with governments and businesses, to help channel more funds to sustainable development. Such efforts will go a long way in making the cities of Asia more sustainable and liveable.”
The bank also launched the UOB Real Estate Sustainable Finance Framework last year to help finance the construction of sustainable buildings.

Published : November 27, 2020

By : THE NATION