Pioneering Partnership Unlocks S$100 Million for Global Impact: ABC Impact, DBS, and UOB Forge a New Path in Sustainable Finance

Singapore is witnessing a pivotal moment in sustainable finance as Temasek-backed impact investment firm, ABC Impact, forges a groundbreaking S$100 million sustainability-linked subscription loan facility with financial powerhouses DBS and UOB. This landmark collaboration marks ABC Impact’s first facility of its kind, signifying a bold commitment to driving positive environmental and social impact across Asia and beyond.

The multi-currency facility is meticulously structured, tying its financing costs directly to ABC Impact's achievement of ambitious Sustainability Performance Targets (SPTs).

These crucial metrics include enhancing gender diversity on the boards of its portfolio companies and ensuring a significant percentage of these companies commit to setting emission reduction targets and achieving net-zero goals. This innovative approach ensures that financial performance is intrinsically linked to measurable advancements in sustainability.

At its core, this facility is designed to supercharge ABC Impact's mission to invest in businesses that are actively tackling some of the world's most pressing challenges.

From combating climate change and addressing resource scarcity to fostering better health and financial inclusion, ABC Impact strategically deploys capital into ventures aligned with the United Nations Sustainable Development Goals (UN SDGs). These include promoting Good Health & Well-being (SDG 3), Quality Education (SDG 4), Clean Water & Sanitation (SDG 6), Affordable & Clean Energy (SDG 7), and Climate Action (SDG 13), among many others.

Mr.

Tan Shao Ming, CEO of ABC Impact, articulated the firm’s vision: "This sustainability-linked facility is a testament to our unwavering dedication to driving measurable impact. By integrating ESG considerations directly into our financing, we are not only reinforcing our commitment but also paving the way for a more responsible investment ecosystem.

This partnership with DBS and UOB enables us to further accelerate our investments into innovative solutions that address critical global challenges."

DBS, serving as the Lead Arranger, Sustainability Coordinator, and a key Lender, played a pivotal role in structuring this forward-thinking facility.

Ms. Tan Su Shan, Group Head of Institutional Banking at DBS, commented, "We are proud to partner with ABC Impact and UOB on this significant initiative. The growing trend of sustainability-linked financing underscores a collective recognition that economic growth and environmental stewardship must go hand-in-hand.

DBS remains committed to supporting our clients in their journey towards building more sustainable businesses and a better world."

UOB also joins as a vital Lender, further solidifying the collaborative spirit behind this deal. Mr. Frederick Chin, Head of Wholesale Banking at UOB, added, "UOB is deeply committed to accelerating Asia’s sustainable transformation.

Our participation in this facility reflects our belief in the power of impact investing to create tangible positive change. We look forward to seeing the transformative impact that ABC Impact’s portfolio companies will achieve with this enhanced support."

This S$100 million facility not only underscores the burgeoning importance of ESG integration in finance but also highlights Singapore’s burgeoning role as a hub for sustainable finance.

It sets a new benchmark for how financial institutions can partner with impact investors to channel capital towards creating a more sustainable and equitable future for all.