Connecting Dots Across Asia's Tech and Urban Landscape
Connecting Dots Across Asia's Tech and Urban Landscape

DBS Converts EUR 500 Million Guarantee Facility With Siemens Gamesa Renewable Energy To Green Facility

DBS Bank (DBS) announced that it has converted to a green facility, its EUR 500 million bank guarantee issuance facility with Siemens Gamesa Renewable Energy (Siemens Gamesa). Siemens Gamesa is a leading global manufacturer of onshore and offshore wind turbines.

Under this green facility, Siemens Gamesa will be able to issue Green Guarantees to support their supply of equipment and services for wind energy projects internationally, with unique features that promote and assure higher standards of sustainable sourcing and deployment. This supports the United Nations Sustainable Development Goals (SDGs) relating to “affordable and clean energy” as well as “climate action”, and advances Siemens Gamesa and DBS’ commitments to sustainable development.

Terence Yong, Group Head, Western Multinationals, DBS, said that the demand for sustainable financing to support the renewable energy sector in Asia is growing. 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.

“At DBS, we believe that we have a responsibility to partner with clients that are advancing clean energy in Asia. We are pleased that together with clients like Siemens Gamesa, we are able to contribute to a positive change, advance the SDGs and generate long-term value for the community,” he said.

David Mesonero, CFO of Siemens Gamesa said that the SDGs reflect a new understanding that global development must integrate economic growth, social well-being and environmental protection.

“This deal is a further step in our commitment to being one of the main drivers of sustainable development. At Siemens Gamesa, we are focused on driving this global process and contributing to the attainment of those goals. In fact, our wind turbines produce clean energy for millions of homes and contribute to combating climate change, one of the main challenges that we face at present,” he said.

With over 100 GW of installed wind capacity, Siemens Gamesa contributes to cutting CO₂ emissions by 264 million tons per year, equivalent to the planting of more than four billion trees. The company also supports the global climate protection goals and has adopted a global initiative to decarbonise economies. Siemens Gamesa has undertaken to be carbon-neutral by 2025, by replacing conventional emission-intensive power sources with renewable energies in its operations.

Hong Teck Khiam, Head, Power & Utilities Industry, DBS, said, “Wind energy plays a vital role in the global energy transition. With a comprehensive suite of innovative financing solutions and our Asian network connectivity, DBS is well-positioned to partner global and regional renewable energy players in this transition journey.”

Over the last two years, DBS has provided over SGD 3 billion in financing and advisory services to the renewable energy sector across nine markets in Asia Pacific comprising onshore and offshore wind projects, as well as ground-mounted, rooftop and floating solar energy projects.

In 2019 alone, DBS closed about SGD 5 billion in sustainable finance transactions comprising green loans, sustainability performance-linked loans and renewable energy financing. Key milestone transactions include:

  • Inking Singapore’s first sustainability-linked loan for an SME with leading egg producer Chew’s Agriculture[1];
  • Signing first-of-its-kind SDG Innovation Loan with City Developments[2] to accelerate innovative solutions that have a positive impact on SDGs;
  • Signing Taiwan’s first sustainability-linked loan with AU Optronics[3]. The loan is also the first of its kind for an IT company in Asia Pacific;
  • Being Mandated Lead Arranger for the financing of three offshore wind farms in Taiwan worth SGD 8.5 billion equivalent. These wind farms will have a total installed capacity of 1.1GW and will supply clean energy to more than 900,000 Taiwanese.
  • Advising and leading the financing of Vena Energy’s 70MW ground-mounted solar structure, Taiwan’s largest-to-date.

Last year, DBS also launched the second season of its award-winning mini-series Sparks to shed light on some of the most pressing social and environmental issues of the day. The episodes were inspired by the stories of social enterprises supported by DBS Foundation, which has nurtured over 300 social enterprises and awarded over 100 social enterprises in Asia with more than SGD 4.7 million in grant funding.

Share this article
Shareable URL
Prev Post

A321 Converted Freighter Receives EASA Supplemental Type Certification

Next Post

SUTD And Thales Collaborate To Accelerate The Development Of Smart Aviation Technologies

Leave a Reply

Your email address will not be published. Required fields are marked *

Read next