ABC Impact, an impact investment firm supported by Temasek, has partnered with DBS and United Overseas Bank (UOB) to launch a sustainability-linked subscription loan facility. The facility, valued at USD 110 million (SGD 142 million), converts a conventional loan structure into one that ties financing to specific sustainability performance targets.
The new loan is for ABC Impact Fund II, which began in August 2023 and completed its final close in March 2025. The fund now manages assets exceeding USD 600 million (SGD 712 million), twice the size of its first fund. Investors include Temasek, Temasek Trust, the Asian Development Bank, Mapletree Investments, SeaTown Holdings, a Southeast Asian sovereign wealth fund, and several ultra-high-net-worth individuals.
The sustainability-linked structure requires portfolio companies within ABC Impact Fund II to meet targets such as reducing greenhouse gas emissions and increasing the number of beneficiaries in sectors like agriculture, healthcare, education, and financial services. Since its inception, ABC Impact has monitored key impact indicators across its investments to provide data-driven measurement and reporting.
Sugandhi Matta, Chief Impact Officer at ABC Impact said: “This sustainability-linked loan marks an important milestone in ABC Impact’s journey. With our investors’ capital already fully dedicated to impact, and now our financing linked to measurable sustainability outcomes, every dollar we manage is aligned with our mission. By embedding performance targets into mainstream financing structures, we are reinforcing our commitment to deliver both financial discipline and positive social and environmental outcomes across Asia.”
Simon Ong from DBS stated: “This partnership demonstrates financial innovation in action – taking a traditional product and reimagining it to better serve the ecosystem. By working with ABC Impact, we are helping to unlock capital for businesses that generate both financial and social returns. This is an example of how banks can act as enablers of sustainable and impactful development, steering capital towards solutions that improve lives and livelihoods.”
Edmund Leong from UOB added: “UOB is steadfast in our commitment to developing innovative financing solutions that enable our clients to drive meaningful and measurable impact. By structuring the financing to clearly defined sustainability outcomes, this facility represents a new standard in harnessing capital for both commercial success and societal progress. Our collaboration with ABC Impact underscores the critical role of strategic partnerships in tackling pressing environmental and social challenges across the region.”
The collaboration aims to set a new benchmark for integrating sustainability considerations into conventional fund financing within the financial sector.