Singapore’s first EFS-Green Loan to power Mega Port vehicles
**Green trade loan will finance the import of lithium-ion batteries for electric vehicles at Singapore’s new Tuas Mega Port**
HSBC Singapore has extended a S$6m Green Trade Loan to Durapower Group (“Durapower”), becoming the first participating financial institution to issue financing by leveraging the Enterprise Financing Scheme-Green (“EFS-Green Scheme” or “the Scheme”).
The Loan will enable Durapower to accelerate the development and distribution of high-tech energy storage solutions using lithium-ion batteries for the Tuas Mega Port’s Automated Guided Vehicle fleet, a key element in creating a greener port through sustainable, smart and clean energy solutions.1
Regina Lee, Head of Commercial Banking, HSBC Singapore: “The EFS-Green Scheme enabled us to extend finance quickly to Durapower, thereby accelerating the roll out of meaningful technology to support Singapore’s ambition to create a greener port. We hope that this will act as a catalyst to mobilising more enterprises in the journey towards a low-carbon economy.”
The EFS-Green Scheme draws on HSBC’s expertise in providing sustainable financing and investments to support the Bank’s customers to thrive through transition and unlock next-generation climate solutions.2 HSBC’s provision of the Loan extended to Durapower is aligned to the Green Loan Principles (GLP) of the Loan Market Association (LMA).3
Ms. Lee continued: “The transition to a sustainable low-carbon future requires scaling up the financing of investments that provide environmental and social benefits. Green loans play an essential role to finance these requirements both in Singapore and globally.”
Kelvin Lim, Chief Executive Officer, Durapower: “We are very pleased to work with HSBC and be supported with the Green Trade Loan under the EFS-Green Scheme. This will enable Durapower to accelerate the supply and deployment of our advanced lithium-ion batteries for the Tuas Mega Port’s AGV fleet, thereby supporting Singapore’s maritime sector to create a greener port through the adoption of sustainable, smart and efficient clean energy solutions. We hope that through this partnership with HSBC, we are able to rapidly engage the wider economy and contribute to the world’s aims of reducing carbon footprint, globally.”
Enterprise Financing Scheme-Green
Launched on 1 October by Enterprise Singapore, the EFS-Green Scheme aims to provide easier access to finance for corporates who are enablers of the transition to a greener economy.4
The Scheme, which is an enhancement of the existing Enterprise Financing Scheme, provides financing support for Singapore businesses to develop enabling technologies and solutions to reduce waste, resource use and greenhouse gas emissions, so as to seize the growing opportunities in the green economy. EFS-Green provides for risk-sharing of 70% to support lending by partner financial institutions to Project Developers, System Integrators and Technology & Solution Enablers in clean energy, circular economy, green infrastructure and clean transportation sectors.
Media enquiries to:
Lucy Stewart | lucy.stewart@hsbc.com.sg | +65 9658 3405
Note to Editors:
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,969bn at 30 September 2021, HSBC is one of the world’s largest banking and financial services organisations.
Durapower
Headquartered in Singapore, Durapower (www.durapowerbattery.com) offers closed-loop, end-to-end energy storage solutions for the electric mobility and renewable energy applications including on and off-road Electric, Hybrid and Plug-in Hybrid Electric Vehicles, electric marine vessel and stationary energy storage solutions. Since 2009, Durapower has been a leading innovator of Lithium-Ion cell technology, focusing on the research and development of battery materials, of battery cell manufacturing and system integration. With a global presence spanning 20 countries and 45 cities, including European Countries, China, India and Southeast Asia. Durapower strives to make scalable, sustainable batteries that support the circular economy, empowering lives and transforming the future towards a carbon neutral economy.
1 https://markets.businessinsider.com/news/stocks/durapower-wins-major-contract-to-power-psa-corporation-paving-the-way-to-become-a-key-player-in-the-renewable-energy-sector-1028098428
2 https://www.business.hsbc.com.sg/en-sg/campaigns/sustainability/enterprise-financing-scheme-green
3 https://www.lma.eu.com/application/files/9115/4452/5458/741_LM_Green_Loan_Principles_Booklet_V8.pdf
4 https://www.enterprisesg.gov.sg/media-centre/media-releases/2021/october/mr07321_enhanced-financing-scheme-to-support-singapore-companies-to-capture-opportunities-in-the-green-economy