ABC Impact, an impact investing firm backed by Temasek, has converted its conventional loan facility into a sustainable financing instrument in partnership with DBS and UOB.
The SGD 142 million ($110 million) sustainability-linked subscription loan ties financing to measurable social and environmental performance targets, setting a new precedent for sustainable financing in Asia.
Conventional Facility Reimagined for Impact
The new sustainability-linked loan transforms an existing short-term subscription facility, traditionally used by private equity and impact funds to bridge capital calls, into a performance-driven instrument.
The facility is tied to ABC Impact Fund II, launched in August 2023, which closed in March 2025 with assets exceeding SGD 712 million.
The fund’s 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.
Linking Capital to Measurable Outcomes
Under the agreement, portfolio companies under Fund II must meet sustainability performance targets focused on reducing greenhouse gas emissions and expanding benefits across agriculture, healthcare, education and financial services.
ABC Impact has tracked impact indicators since its inception. This data-driven approach provides the foundation for assessing the environmental and social outcomes tied to the new loan.
The conversion aims to strengthen accountability and align financing with the firm’s mission of turning Asia’s challenges into opportunities for sustainable financing and inclusive growth.
Financial Sector Sets New Benchmark
“With our investors’ capital already fully dedicated to impact, and now our financing linked to measurable outcomes, every dollar we manage is aligned with our mission,” said Sugandhi Matta, chief impact officer at ABC Impact. “By embedding performance targets into financing structures, we reinforce our commitment to deliver financial discipline and positive outcomes across Asia.”
DBS’s group head of financial institutions and government-linked corporations, Simon Ong, said the partnership illustrates “financial innovation in action,” adding that it helps channel capital toward businesses delivering both financial and social returns.
UOB’s head of group corporate banking, Edmund Leong, said the structure “sets a new standard in harnessing capital for both commercial success and societal progress,” underscoring the role of collaboration in addressing Asia’s environmental and social challenges.
Driving Sustainable Finance Across Asia
Through this facility, ABC Impact, DBS, and UOB are creating a new model for integrating sustainability metrics into mainstream fund financing. The structure encourages impact-driven investment and accountability across sectors, reinforcing Singapore’s position as a regional leader in sustainable financing.
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