Transforms conventional loan facility into an innovative tool that drives measurable social and environmental outcomes
Singapore, 13 October 2025 ABC Impact, an impact investing firm backed by Temasek and a member of Temasek Trust Asset Managementi, has partnered with DBS and UOB on a sustainability-linked subscription loan facility. The USD 110 million (SGD 142 million)ii sustainability-linked subscription loan facility, jointly established by DBS and UOB, transforms an existing conventional loan facility into an innovative instrument that links financing to measurable impact targets.
Previously, ABC Impact had a conventional subscription loan facility, which is typically a short-term facility that allows private equity and impact funds to bridge the gap between investments made and the receipt of capital called from investors.
With the sustainability-linked loan facility – which is linked to sustainability performance targets – ABC Impact and the two banks will channel capital flows towards projects with meaningful outcomes while embedding a focus on measurable impact and disclosure into the financing structure itself.
The loan facility is for ABC Impact Fund II, which was incepted in August 2023 and held its final close in March 2025. Assets under management (AUM) of the fund currently exceed USD 600 million (SGD 712 million) – double the size of its inaugural Fund I – with commitments from investors including Temasek, Temasek Trust, the Asian Development Bank, Mapletree Investments, SeaTown Holdings, a Southeast Asian sovereign wealth fund and ultra-high-net-worth individuals.
Under the terms of the sustainability-linked loan facility, ABC Impact Fund II’s portfolio companies will be required to achieve sustainability performance targets related to avoided or reduced greenhouse gas emissions, as well as number of beneficiaries reached across key impact sectors such as agriculture, healthcare, education and financial services.
ABC Impact has tracked key impact indicators across its portfolio since inception, providing a data-driven foundation for measuring and reporting the outcomes achieved by its investments. The conversion of this loan facility into a sustainability-linked loan facility creates additional incentives to raise the bar on performance and further aligns financing with the fund’s mission to address pressing environmental and social challenges in Asia and reframe them into growth and development opportunities.
With this facility, ABC Impact, DBS and UOB are establishing a new benchmark for the financial sector in integrating sustainability considerations into conventional fund financing.
Sugandhi Matta, Chief Impact Officer, 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, Group Head of Financial Institutions and Government-Linked Corporations, DBS said: “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, Head of Group Corporate Banking, UOB, said: “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.”
