UOB expands access to sustainable financing for SMEs

United Overseas Bank (UOB) has integrated the Singapore-Asia Taxonomy (SAT) into its frameworks for sustainable financing, reportedly allowing small and medium enterprises (SMEs) in sectoral value chains to obtain easier access to sustainable financing.

UOB stated that it is the sole bank in Singapore to integrate the Monetary Authority of Singapore’s (MAS) technical screening criteria (TSCs) of SAT into all six of its sector-specific sustainable financing frameworks.

The six frameworks include Circular Economy, Green Buildings, Sustainable Cities, Sustainable Food and Agriculture, Sustainable Trade, and Transition Finance.

To make certain that its sustainable funding stays available, UOB’s frameworks now incorporate SMEs.

The bank stated that it employs a varied evaluation model as well. Entities directly engaging in economic activities, like project owners and primary contractors, aiming to secure financing above a certain limit must demonstrate their adherence to particular criteria.

In the meantime, different organizations, like those evaluated with reduced risk profiles, will adopt an attestation-centered method with compulsory representations and warranties.

The bank is also broadening transition finance to ensure a fair and systematic shift in the oil, gas, and chemicals sectors, with specified end dates set.

According to UOB, this supposedly provides firms with the necessary time and assistance to adjust their business models, improve operational efficiencies, and transition to lower-carbon alternatives.