ABC Impact, an impact investment firm backed by Temasek, has collaborated with DBS and UOB to introduce a US$110m (S$142m) sustainability-linked subscription loan facility. This innovative financial instrument, announced on 15 October 2025, transforms a conventional loan into one that ties financing to measurable sustainability targets.
The facility is designed for ABC Impact Fund II, which was launched in August 2023 and closed in March 2025, with assets under management exceeding US$600m. The fund, supported by investors such as Temasek and the Asian Development Bank, aims to channel capital towards projects with significant social and environmental impacts. The loan requires portfolio companies to meet sustainability performance targets, including reducing greenhouse gas emissions and reaching beneficiaries in sectors like agriculture, healthcare, and education.
Sugandhi Matta, Chief Impact Officer at ABC Impact, highlighted the milestone, stating, “This sustainability-linked loan marks an important milestone in ABC Impact’s journey.” She emphasised the alignment of financial management with the firm’s mission to deliver positive outcomes across Asia.
DBS’s Simon Ong noted the partnership’s role in financial innovation, whilst UOB’s Edmund Leong underscored the importance of strategic collaborations in addressing regional challenges. This initiative sets a new benchmark for integrating sustainability into financial structures, reinforcing the commitment to societal progress and environmental stewardship.
