Key Highlights:
- UOB has launched a green financing solution called U-drive for electric vehicles
- The solution has been launched to promote the development of the EV sector and simplify the transition to green vehicles
- Green financing solution is a massive step towards creating a sustainable future
Importance of Green Financing Solution
Due to extreme climate change and other environmental factors, the demand for hybrid and electric vehicles has drastically increased. People are being more environmentally conscious and going green to combat environmental changes and create a sustainable future. To contribute to this change, many financial institutions have introduced green financing solutions for electric vehicles and charging points.
What is green financing?
Green Financing refers to those financial activities that are done to achieve a sustainable and eco-friendly environment. It involves investing in green and clean technologies, financing for sustainable natural resource-based green economies, climate-smart blue economy, and increased use of green bonds. United Overseas Bank Limited has recently launched an integrated green financing solution – called U-Drive – for electric vehicle businesses including automotive brand owners and car dealers. UOB is a multinational investment bank and financial services company based in Singapore that provides commercial and corporate finance and banking services.
The U-Drive Initiative
U-Drive has been designed to meet the financial needs of all automotive brand owners, car dealers, charging point operators, and all users of the electric vehicle ecosystem. It is an initiative taken under the UOB Smart City Sustainable Finance framework. This solution provides a wide range of green banking facilities that include trade financing, dealer stock financing, Green Hire Purchase loan, and Go Green car loan products. The main aim for implementing this solution is to promote the development of the EV sector and simplify the transition to green vehicles that will further contribute to a cleaner and greener environment.
UOB Collaboration with HSEV
UOB has collaborated with Hong Seh Evolution (HSEV) – the authorized distributor of commercial EVs and dealer of BYD T3 electric vans in Singapore – to pioneer this solution. This will provide HSEV with greater working capital flexibility in managing its commercial EV sales and inventory. This collaboration is a testament to HSEV’s long-standing trust in the bank.
Also Read: Ola’s E-Scooter: A Step Towards Affordable Electric Two-Wheelers
