DBS Bank (DBS) announced on February 24 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.

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.

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.

Over the last two years, DBS has provided over SGD3 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;

• Signing first-of-its-kind SDG Innovation Loan with City Developments to accelerate innovative solutions that have a positive impact on SDGs;

• Signing Taiwan’s first sustainability-linked loan with AU Optronics. 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.