CIMB Singapore has introduced the SME Sustainability-Linked Loan/Financing Programme (SME SLL/SLF Programme) to provide small and medium-sized enterprises (SMEs) with easier access to sustainable financing and support in achieving credible greenhouse gas (GHG) emission reductions.
Historically, sustainability-linked financing has been complex and expensive due to the highly bespoke targets and significant costs associated with carbon accounting and verification. The CIMB SME SLL/SLF Programme addresses these issues by offering a simplified, cost-effective solution aligned with the globally recognised Loan Market Association’s sustainability-linked loan principles.
Benjamin Tan, head of commercial and transaction banking at CIMB Singapore said, “Time is of the essence for businesses to embark on sustainable practices with the support of financing. Recognising that SMEs may lack resources and are looking for simpler ways to access SLL/SLF opportunities, the CIMB SME SLL/SLF programme is designed to be simple and self-directed, which means our client is always in control. The experience is also fully digital, complemented by our online business account opening process.”
For the CIMB SME SLL/SLF Programme, CIMB collaborates with STACS, a Singapore-based ESG data and technology solutions provider, and Bureau Veritas, a leading testing, inspection, and certification company. After agreeing on Sustainability Performance Targets (SPTs) with CIMB, clients can calculate their baseline carbon emissions using ESGpedia, a digital platform by STACS that automatically converts operational data like fuel, refrigerant, and electricity consumption into GHG emissions. Upon successful verification of the achieved SPTs by Bureau Veritas, clients can enjoy a rebate on the interest/profit rates payable on their loan/financing.
New and existing clients are eligible for a 0.20% rebate on interest/profit rates for the first 12 months of enrollment, with the possibility of an increase to 0.40% in the second year, depending on the SPTs achieved.
Benjamin Soh, founder and managing director, STACS ESGpedia said, “SMEs are facing increasing pressure from their customers, especially in the light of upcoming ESG regulations worldwide. We are deeply privileged to be partnering with CIMB Singapore and providing our ESGpedia digital platform to enable SMEs to achieve their ESG goals as well as get financing benefits from the CIMB SME SLL/SLF programme. On top of that, all participants will also be issued the ESCAP Sustainable Business Network (ESBN) Asia Pacific Green Deal Badge, which will support the SMEs’ amplification of their sustainability efforts and engagements with their customers, suppliers, investors, and financiers.”
Marcus Wa from Inventivo Pte Ltd, a pilot participant of the SME SLL/SLF programme said, “The platform is user-friendly and easy to manoeuvre. CIMB’s relationship manager assisted me when I needed some clarifications. I am very pleased that I have now started the sustainability journey for my company. I look forward to improving our carbon emission in the years to come.”