Immediately United Abroad Financial institution (UOB) launched a Inexperienced and Sustainable Deposits resolution for its company and institutional purchasers, the primary such product in Singapore provided by a neighborhood financial institution. The answer was piloted with GIC.
Beneath this resolution, the deposits are deployed to inexperienced loans underneath UOB’s sustainable finance frameworks. The frameworks cowl financing options for eligible belongings and actions that meet particular ESG standards inside inexperienced actual property, renewable power, power effectivity, good metropolis infrastructure, and the round economic system. All initiatives financed underneath the Financial institution’s sustainable finance frameworks are aligned with the United Nations Sustainability Growth Objectives (UN SDGs).
The minimal deposit measurement for the answer is S$10 million and it’s open to firms globally. Firms will earn market rates of interest on their money deposits.
A key characteristic of the Inexperienced and Sustainable Deposits resolution is an annual report that might be supplied to firms on the environmental impacts their deposits have made. For instance, firms can see which industries to which their deposits have been channelled by way of UOB’s sustainable financing. On the similar time, the report can even mirror the greenhouse gasoline emissions averted and the corresponding results, comparable to the equal variety of tree seedlings planted and the variety of vehicles faraway from the street. With the report, firms will have the ability to quantify their contributions to sustainable improvement and use the info for their very own sustainability reporting.
Ms Lim Lay Wah, Head of the International Monetary Establishments Group, UOB, stated: “Our Inexperienced and Sustainable Deposits resolution offers our purchasers a chance to place their cash the place it issues. It supplies direct involvement within the financing of significant sustainability initiatives globally. We thank GIC for putting their belief in us. On the similar time, we welcome different like-minded organisations to combine accountable financing into their companies and be part of us on this sustainability journey.”
UOB’s sustainable finance options, together with the Inexperienced and Sustainable Deposits resolution, are housed underneath the Financial institution’s sustainable finance umbrella frameworks. They embrace the UOB Sustainable Finance Framework for Inexperienced Constructing Builders and House owners, UOB Good Metropolis Sustainable Finance Framework, UOB Inexperienced Financing Framework for Round Financial system, and UOB Inexperienced and Sustainable Commerce Finance and Working Capital Framework. These frameworks are aligned with the Mortgage Market Affiliation/Asia Pacific Mortgage Market Affiliation (LMA/APLMA) Inexperienced Mortgage Rules and Sustainability Linked Mortgage Rules, in addition to the Worldwide Capital Market Affiliation’s Local weather Transition Finance Handbook.
Ms So Lay Hua, Head of Group Transaction Banking, UOB, stated: “Our sustainability-focused purchasers are all the time on a look-out for banking merchandise that may transfer them nearer to their inexperienced targets. With our Inexperienced and Sustainable Deposits resolution, purchasers can combine accountable financing throughout their operations. They could be assured that our sustainable finance frameworks adjust to top-in-class international requirements.”