SGD 100 million loan facility provided by DBS will be used to make the global operator ComfortDelGro’s bus fleet greener in the UK.

Transport company ComfortDelGro Corporation announced it received an SGD 100 million ($73 million) green loan from Singaporean lender DBS to decarbonize its UK bus fleet, which is operated by the firm’s wholly-owned subsidiary, Metroline — the fourth largest scheduled bus operator in London.

Metroline is currently covering about 17% of London’s scheduled bus services. The fresh loan facility was used to purchase 135 electric buses: 77 double-deckers and 58 single-deck ones. The EVs will replace 135 internal combustion engine-powered buses. The firm estimates it will be able to avoid approximately 9,900 tonnes of CO2 equivalent tailpipe emissions annually with this fleet update.

The initiative is part of ComfortDelGro’s ongoing efforts to transition its global bus fleet to 50% cleaner energy vehicles by 2030 and 100% by 2050.

The transport corporation operates in 12 countries, including Singapore, Australia, the UK, New Zealand, China, Ireland, France, Malaysia, Spain, Portugal, Greece, and the Netherlands. Its network includes public transport like buses and rail, point-to-point transport with taxis and private hire cars, and business-to-business mobility solutions. Nearly half of ?ComfortDelGro’s fleet consists of cleaner energy vehicles, according to the corporate statement.

“As a leading multi-modal transport operator, we are keen to drive sustainability through the businesses we operate. This green loan from DBS enables us to advance our sustainability goals, driving positive impact for the environment and the communities we serve.”

Cheng Siak Kian, Managing Director/Group Chief Executive Officer of ComfortDelGro

Max Lim, Managing Director and Group Head of Shipping, Aviation, Logistics and Transportation, Institutional Banking Group, DBS, noted that the organization was committed to supporting its customers’ decarbonisation efforts. Regarding the transportation segment, it is critical to boost its sustainability. Although transport infrastructure is the lifeblood of any economy, it is also a significant contributor to greenhouse gas emissions, said Mr Lim.

The increasing frequency of large green loans confirms the results of a recent LBBW study, “Sustainability and Green Finance,”?which revealed that combining finance with sustainable aspects is increasingly becoming normal rather than exceptional.