ABC Impact, an impact investing firm backed by Temasek and a member of Temasek Trust Asset Management, has partnered with Singaporean banks DBS and UOB on a subscription sustainability-linked loan ( SLL ) facility.

The US$110 million subscription SLL 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, the company notes, 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 SLL 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 of the fund currently exceed US$600 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 various ultra-high-net-worth individuals.

Under the terms of the SLL facility, the fund’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, the company states, “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 benchmark for the financial sector in integrating sustainability considerations into conventional fund financing.

“This sustainability-linked loan marks an important milestone in ABC Impact’s journey,” adds Sugandhi Matta, ABC Impact’s chief impact officer. “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.”