UOB has launched U-Drive, an integrated green financing solution for electric vehicles (EVs) in Singapore.
The drive is part of UOB’s suite of sustainable financing solutions under the UOB Smart City Sustainable Finance framework.
The solution is designed to meet the financial needs of all EV ecosystem players – from automotive brand owners, car dealers, charging point operators to end-users.
It provides a wide range of green banking facilities that include trade financing and dealer stock financing.
See also: DBS, UOB among analysts' top picks, as Singapore banking sector remains 'overweight'
For instance, automotive brand owners that launch business models such as battery-as-a-service, or car dealers planning to expand their EV inventory, can utilise the bank’s green facilities for their working capital needs.
The bank will be pioneering the solution with Hong Seh Evolution, who is the authorised distributor of commercial EVs from Dongfeng Sokon Automobile and the dealer of BYD T3 electric vans in Singapore.
“Through U-Drive, we want to help promote the development of the EV sector and simplify the transition to green vehicles, so as to contribute to a cleaner and greener environment,” says Karunia Tjuradi, head of sector solutions group at UOB.
On the collaboration with Hong Seh Evolution, Eric Tham, UOB’s head of group commercial banking says the ongoing collaboration is “testament” to the latter’s long-standing trust in the bank.
According to Tham, UOB has been supporting the distributor for four decades.
“We believe that our green facilities under the U-Drive solution will enable Hong Seh Evolution, as well as our clients in the EV sector, to meet their working capital needs more effectively for greater speed to market,” says Tham.
“We have been banking with UOB since 1970. The bank has been supportive of our foray into EVs, in particular our venture into commercial EVs, which we expect will continue to grow in demand. We are expanding as a one-stop electric vehicle hub spanning sales, leasing and even charging infrastructure and we look forward to continued support from UOB under the U-Drive solution,” says Edward Tan, director of Hong Seh Evolution.
As at 10.45am, shares in UOB are trading 2 cents lower or 0.078% down at $25.58.