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Singapore licence for Incomlend’s ESG loans



A company with a secure foundation could access capital if it met a number of ESG criteria. This approach is of interest to many institutional investors. (Photo: Shutterstock)

A company with a secure foundation could access capital if it met a number of ESG criteria. This approach is of interest to many institutional investors. (Photo: Shutterstock)

What if SMEs that meet ESG criteria could access loans more easily? This is one of the three axes on which Incomlend is working, in Luxembourg and Singapore, where it has obtained a capital markets services licence from the regulator. The aim is to raise €428m.

Since its launch in 2016, Incomlend has helped SMEs find more than €428m in funding in more than 50 countries by connecting importers, exporters and investors. Today, the Luxembourg and Singapore-based company is adding a new dimension to its service of providing capital to SMEs--for the time being in Asia--by making access to loans conditional on good financial health but also on good environmental governance.

On Wednesday, Incomlend announced that its subsidiary Incomlend Capital has received a “capital markets services” licence from the Singaporean regulator, the Monetary Authority of Singapore (MAS), to conduct fund management and collective investment activities.

“One of the important funds that Incomlend Capital will manage is the Incomlend Environmental, Social and Governance (ESG) Bill Funding Programme, the first ESG-focused structured finance programme in Asia,” the company said in a statement. “Incomlend Capital aims to raise €428m for the programme and is in advanced discussions with institutional investors. This includes a €49m investment from European alternative asset manager Fasanara Capital.”

The initiative enables small and medium-sized enterprises (SMEs) that meet ESG and financial criteria to access fast-track invoice financing solutions, and investors to provide capital only to companies that have these interests.

Incomlend Group's strategic partners include leading venture capital funds such as Sequoia Capital and GTR Ventures, and multinational logistics companies such as CMA CGM.

This story was first published in French on Paperjam. It has been translated and edited for Delano.