FAQ: Enterprise Financing Scheme - Green

FAQ: Enterprise Financing Scheme – Green

  • What is the objective of EFS-Green?

    EnterpriseSG launched EFS-Green in October 2021 to enable better access to green financing for enterprises that are Project Developers, System Integrators and Technology & Solution Enablers which develop enabling technologies and solutions to reduce waste, resource use or greenhouse gas emissions, especially in sectors of Clean Energy, Circular Economy, Green Infrastructure and Clean Transportation. This is part of the Enterprise Sustainability Programme (launched on 1 Oct 2021).

    The efforts are aligned to the Singapore Green Plan 2030, which identifies a focus on helping local enterprises develop capabilities, build track-record and capture growth opportunities within the green economy to develop a strong pool of enterprises within these sectors, with the aim to generate economic value-add, environmental impact and good jobs for Singaporeans.

    In addition, given the increasing need for Singapore enterprises to embark on and accelerate their sustainability journey, from 1 April 2024 onwards, EFS-Green is enhanced to provide support for enterprises that are Green Technology & Solution Adopters (i.e. enterprises that adopt technologies and solutions that are green or transitional), to help more local enterprises adopt green solutions and reduce their carbon footprint. This will in turn accelerate the green transition by Singapore businesses, and contribute to the targets set in Singapore Green Plan 2030.

    EnterpriseSG will provide 70% risk-share to catalyse the lending from partner financial institutions. Eligibility criteria are indicated in Annex A.

  • What is the risk sharing from EnterpriseSG and for which financing products?
    Risk-share for EFS-Green will be at 70% for Developmental Capital, Fixed Asset Financing, Trade Loans, Venture Debt Loans, Project Finance and M&A Loans. The parameters of the scheme coverage are indicated in Annex B.
  • Which are the eligible Participating Financial Institutions (PFIs) on this programme?

    The eligible partner FIs for EFS-Green are DBS, UOB, OCBC, HSBC, CIMB, Standard Chartered Bank (SCB) and Maybank.

    These eligible partner FIs have developed Green and Sustainable Financing Frameworks for enterprises. These frameworks have been approved by an MAS-recognised SPO (Second Party Opinion) provider. Loans under the scheme should be classified as a Green Loan as assessed by the partner FIs in accordance with their Green and Sustainable Financing Frameworks.

  • When is EFS-Green open for application? How long is the scheme available for enterprises?

    EFS-Green is open for applications from 1 Oct 2021 until 31 Mar 2026. All applications must be approved by a partner FI by 31 Mar 2026.

  • Can EFS-Green support my company’s projects overseas?
    Yes, EFS-Green supports both overseas and domestic projects, so long as they meet the qualifying criteria indicated in Annex A.
  • What is the difference between EFS-Green and other EFS products?

    EFS-Green is a targeted scheme to support eligible enterprises (i.e. Project Developers, System Integrators, Technology & Solution Enablers) to capture opportunities in the green economy and enable access to green financing. From April 2024 onwards, EFS-Green will also support enterprises that are Technology & Solution Adopters of qualified green and transitional technologies, to help them embark on their sustainability journey and reduce their carbon footprint.

    To be eligible for EFS-Green, the loan provided by the partner FIs must be structured as a Green Loan.

    The Enterprise Financing Scheme, on the other hand, provides broad-based support to local enterprises across all sectors and where the utilisation of the loan is only tied to the type of loan facility which the enterprise applied for.

  • Can enterprises apply for the EFS-Green loan and other Enterprise Financing Scheme facilities at the same time?
    Yes, enterprises can apply for EFS-Green and other facilities under the Enterprise Financing Scheme if they meet the criteria for each scheme, subject to assessment by the PFIs.
  • Can enterprises apply for the EFS-Green scheme multiple times with different PFIs?
    Yes, enterprises can approach the PFIs to apply, with the total aggregated amount borrowed under the scheme together with other Enterprise Financing Scheme products capped at S$50 million per borrower group, subjected to the assessment by the PFIs.
  • PFIs are not willing to approve my company’s loan application even though it is eligible for the EFS-Green scheme. What can I do?
    All eligible enterprises applying for the EFS-Green scheme are subject to assessment by the PFIs. Enterprises which require further support may approach EnterpriseSG at (65) 6898 1800 or submit an enquiry through https://go.gov.sg/askenterprisesg.
  • As EnterpriseSG provides 70% risk share for the EFS-Green scheme, are borrower/guarantors only responsible for the remaining 30% of the loan?
    No. The borrower and guarantor are responsible to repay 100% of the loan amount. When defaults occur, the PFIs are obligated to follow their standard commercial recovery procedure, including the realisation of security, before they can make a claim against EnterpriseSG for the unrecovered amount in proportion to the risk-share percentage.
  • Why do banks require a 100% Personal Guarantee (PG) when the government covers 70% of the loan amount?
    A PG is not only a means of security but also signals commitment by the guarantor(s) that they are committed to the loan obligation.
  • For adopters, why do activities have to fall under the “Green” or “Amber” threshold in the Singapore-Asia Taxonomy for Sustainable Finance?

    The Singapore-Asia Taxonomy for Sustainable Finance (“SG Taxonomy”) was developed by Monetary Authority of Singapore, in consultation with industry stakeholders. It provides clear, science-based criteria and thresholds to define green and transition activities.

    By requiring adopters to have qualified activities meeting the “Green” or “Amber” criteria / threshold defined under the SG Taxonomy, it ensures that companies taking up financing under EFS-Green adopt credible technologies and solutions that meaningfully enable them to reduce their carbon footprint, which in turn accelerates Singapore’s green transition.

Annex A: Eligibility Criteria for EFS-Green

Eligible enterprises must:
  1. be a business entity that is registered and physically present in Singapore,
  2. have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership,
  3. have group annual sales turnover of not more than S$500 million,
  4. and meet the criteria in both Tables 1 and 2 below

Table 1: Qualifying Borrower Types

Qualifying Borrower Types Definition under EFS-Green
Enablers Project Developers Local Enterprises that develop, manufacture, build and operate capital-intensive green projects (which can be integrated projects across the value chain), incorporating proprietary engineering / technologies / solutions with a positive environmental impact.
System Integrators

Local Enterprises that provide engineering designs, procure equipment, install, and construct facilities for project owners.

This also includes Local Enterprises who develop the design, procure components, integrate solutions, and assemble the final system / product, for both consumer and business clients.

The enterprise should provide unique technological value-add, resulting in a positive environmental impact.
Technology & Solution Enablers Local Enterprises that develop and deploy technology and solutions for other enterprises, which result in a positive environmental impact.
Adopters Technology & Solution Adopters Local Enterprises that adopt technologies and solutions that are green or transitional.

Table 2: Qualifying Green Sectors and Activities

Qualifying Sector Qualifying Activities Additional Qualifying Criteria for Adopters
1) Clean Energy & Decarbonisation
  • Energy Efficiency Technologies
  • Smart Grids and related technologies
  • Technologies and Solutions for green energy storage
  • Renewable Technologies and Solutions (e.g. Solar, Wind, Geothermal, Hydropower, Hydrogen, Bioenergy)
  • Production of Electricity from Renewables
  • Low carbon and Decarbonisation Technologies to cover value chain of Carbon Capture Utilisation and Storage (CCUS) and related transportation
 Activities must meet ‘Green’ or ‘Amber’ criteria/thresholds as specified under MAS’ Singapore-Asia Taxonomy for Sustainable Finance
2) Circular Economy & Resource Optimisation
  • Water / Wastewater recycling technologies
  • Technologies to improve water quality and/or water use efficiency including monitoring and treatment
  • Resource efficient packaging
  • Recycling, reutilisation, remanufacturing and refurbishing of materials and waste
  • Waste to Energy solutions / technologies
3) Green Infrastructure
  • Advanced fabrication and material technologies related to green construction and prolonged life of buildings and infrastructure
  • Technologies and solutions related to reduction of construction waste management
  • Technologies and solutions related to reduction and optimisation of resource use by infrastructure
4) Clean Transportation (Land, Sea and Air)
  • Green Maritime transport technologies and solutions, e.g. using LNG, Solar, Hydrogen, Electric or Hybrid engines; green fuel bunkering, maritime decarbonisation, development of biofuel blends;
  • Green Aviation technologies, e.g. green aviation fuel, green and sustainable aviation designs, green MRO solutions and technologies;
  • Electric Vehicles technologies and solutions, e.g. charging infrastructure, charging technology, grid integration solutions, critical EV components manufacturing, such as EV batteries

Annex B: Government risk-share for EFS-Green will be at 70% for the below financing products

Table 3: EFS-Green Parameters

Financing Products Supportable Areas Loan Parameters
Developmental Capital Supportable Areas
 Expenses related to green initiatives
  • New Product Development
  • Technology Development expenses
  • Consultation & Certification fees
 Loan Parameters
    Max Product Cap per borrower:
  • S$3m
  • Max Loan Period: 5 years
Fixed Assets Loan Supportable Areas
  • Purchase of equipment and machinery related to green initiatives
  • Construction of factories or purchase of land related to green initiatives
 Loan Parameters
  • Max Product Capper borrower: S$30m
  • Max Loan Period: 15 years
Trade Loan Supportable Areas
 Trade financing for green and sustainable products, inventory and raw materials 		Loan Parameters
  • Max Product Cap per borrower: S$10m
  • Max Loan Period: 1 year
Project Loan Supportable Areas
 Finance fulfilment of overseas and domestic green projects 		Loan Parameters
  • Max Product Cap per borrower: S$50m
  • Max Loan Period: 20 years
Venture Debt Loan Supportable Areas
 Finance the growth of innovative enterprises with green initiatives using Venture Debt & Warrants
 Loan Parameters
  • Max Product Cap per borrower: S$8m
  • Max Loan Period: 5 years
Merger & Acquisition Supportable Areas
 Finance the mergers and acquisition of target enterprises related to green initiatives
 Loan Parameters
  • Max Product Cap per borrower: S$50m
  • Max Loan Period: 5 years
Government Risk-Share Loan Parameters
  • 70%
  • Loan must meet PFIs Green Loan criteria
Total Borrower Group Cap for EFS and EFS Green
(including parent, subsidiaries, etc.) 		Loan Parameters
 Max $50mil

  1. Borrower; and
  2. Corporate shareholders holding more than 50% at all levels up; and
  3. Subsidiaries where the Applicant company holds more than 50% shareholdings and subsequent subsidiaries at all levels down
  4. Subsidiaries where the Applicant’s Ultimate Parent Company holds more than 50% shareholdings and their subsidiaries at all levels