With the new green facility, Spanish wind turbine manufacturer Siemens Gamesa, which has over 100 gigawatts of installed wind capacity and aims to be carbon-neutral by 2025, will be able to issue green guarantees.
DBS has converted its €500 million ($542.45 million) bank guarantee issuance facility with Siemens Gamesa to a green facility, the bank said in a statement on Monday.
Under the new green facility, Siemens Gamesa will be able to issue Green Guarantees to support its supply of equipment and services for wind energy projects internationally, and promote and assure higher standards of sustainable sourcing and deployment, the statement said.
Sustainable Financing Demand Grows
Demand for sustainable financing to support the renewable energy sector in Asia is growing, said Terence Yong, group head, Western Multinationals, DBS.
«It is therefore important to support clients such as Siemens Gamesa who not only want to make clean energy more affordable and reliable but also ensure high standards of sustainability in its supply chain,» Yong said.
According to the bank, in the past two years, it has provided over S$3 billion in financing and advisory services to the renewable energy sector across nine markets in Asia Pacific. Last year, the bank closed about S$5 billion in sustainable finance transactions, comprising green loans, sustainability performance-linked loans and renewable energy financing.
