UOB’s Sustainability Bond drives Asia’s Green Transition with 300,000 Tonnes in CO₂ Savings

With nearly 300,000 tonnes of CO₂ avoided annually and financing models that combine green infrastructure with SME support, UOB’s 2025 report offers a blueprint for sustainable banking in Asia’s fast-growing economies.

SINGAPORE, September 19, 2025 — United Overseas Bank (UOB) has released its 2025 Sustainability Bond Impact Report, providing a detailed account of how its S$1.5 billion sustainability bond, launched in 2021, has been deployed to finance green and social projects in Singapore and across Southeast Asia.

The report shows that as of March 2025, UOB had allocated S$2.4 billion to eligible projects, surpassing the bond’s original issuance through refinancing and additional qualifying assets. The investments are concentrated in green buildings and renewable energy, with a smaller portion directed to SMEs to support employment and resilience.

A Singapore-Centric Push on Green Buildings

The largest share — 77.4% of the total allocation — was directed to green buildings, primarily in Singapore. These include developments certified under BCA Green Mark Platinum, LEED Gold, and EDGE standards. Such certifications signify reduced energy consumption, water efficiency, sustainable materials usage, and smart building management systems.

One of the flagship examples is Frasers Tower, where UOB was part of a S$1.08 billion syndicated green loan — the first of its kind in Southeast Asia. The Grade A office tower integrates features such as a rainwater harvesting system, efficient air-conditioning, and recycling facilities, alongside end-of-trip amenities for cyclists and EV charging stations.

By financing such projects, UOB contributes to Singapore’s ambition of achieving 80% of buildings certified green by 2030, aligning the bank’s role in supporting the city-state’s Green Plan 2030.

Scaling Renewable Energy in Southeast Asia

Beyond Singapore, UOB has channelled 21.5% of the bond proceeds into renewable energy, predominantly solar projects in Malaysia and the wider region.

Key examples include:

Ragawang Solar Power Plant, Pahang (Malaysia):

Financed through a RM185 million (~S$56 million) green loan under the country’s Large-Scale Solar (LSS4) programme. Operational since January 2024, the 50 MW plant generates 107 GWh of electricity annually, enough to power 31,000 homes, while avoiding 68,550 tonnes of CO₂ emissions per year.

Junjong LSSPV Plant, Kedah (Malaysia):

Backed by UOB financing, this 28.3 MW solar facility supplies 20 GWh per year, displacing around 12,165 tonnes of CO₂ emissions annually.

Across all renewable projects financed, UOB reports an installed capacity of 1,510 MWp, producing approximately 1.67 million MWh of clean energy each year. This translates into an avoidance of 291,836 tonnes of CO₂ annually — the bulk of the bank’s climate impact from its bond allocations.

Social Impact: Supporting SMEs

While smaller in proportion, about 1.2% of allocations (S$27.98 million) went to SME financing to support employment generation. Around 270 small and medium enterprises benefited from loans that helped sustain operations, safeguard jobs, and facilitate business continuity during recovery phases after the COVID-19 pandemic.

This allocation underscores UOB’s recognition that social inclusion is a core part of sustainability, especially in Asia where SMEs account for more than 90% of businesses and provide the majority of employment.

Tangible Environmental Gains

The projects financed through the bond collectively deliver measurable impact:

Annual emissions avoided: ~299,900 tonnes of CO₂e

Renewable energy generated: ~1.67 million MWh per year

Green buildings impact in Singapore: ~8,085 tonnes CO₂e avoided annually

SME beneficiaries: 270 companies supported

These metrics were independently verified by Ernst & Young and adhere to conservative, transparent methodologies aligned with international standards.

Regional Significance for APAC

The report highlights two critical themes for the region:

Singapore as a Green Finance Hub:

By funnelling a large share of funds into domestic green buildings, UOB reinforces Singapore’s role as the testing ground for sustainable finance frameworks. The city-state’s ability to align banks, regulators, and developers demonstrates a model for regional replication.

Momentum for Southeast Asian Renewables:

Investments in Malaysian solar farms showcase the growing appetite for cross-border green finance. With ASEAN nations collectively targeting 23% renewable energy by 2025, UOB’s funding directly accelerates progress while signalling investor confidence in large-scale renewables.

Challenges Ahead

Despite strong achievements, the report also points to gaps:

Sectoral Concentration: Heavy reliance on green buildings means sectors like transport and heavy industry remain underfinanced.

Limited Social Allocation: At just over 1%, the SME/social finance component is modest, suggesting room for greater balance between environmental and social impact.

Cross-Border Risks: Expansion into emerging Southeast Asian markets brings challenges in regulatory stability and impact verification.

For Singapore, UOB’s bond affirms the nation’s ambition to lead in sustainable finance and green urban development. For the wider APAC region, it demonstrates how regional banks can deploy global capital responsibly, pairing transparency with measurable outcomes.