The Sustainable Loan Grant Scheme (SLGS) and Sustainable Bond Grant Scheme (SBGS) are Monetary Authority of Singapore (MAS) grants that pay 100% of the external review, framework and reporting costs of green, social, sustainability, sustainability-linked and transition financing. Both are available until 31 December 2028. Companies and financial institutions, onshore or offshore, can claim up to S$100,000 per instrument, or S$125,000 if they report under an internationally recognised disclosure standard such as ISSB. Loans must be at least S$20 million for three years; bonds must be at least S$200 million and listed in Singapore.
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What do the two schemes pay for?
Neither scheme subsidises interest or the loan itself. They reimburse the cost of proving that a financing is genuinely sustainable: setting up a framework, setting sustainability performance targets, getting an independent opinion before signing, and verifying and reporting afterwards. MAS has set aside S$15 million to extend and enhance the schemes, including support for transition instruments, until 31 December 2028.
Who is eligible, and which instruments qualify?
| Requirement | Sustainable Loan Grant Scheme | Sustainable Bond Grant Scheme |
|---|---|---|
| Eligible applicant | Company or financial institution, onshore or offshore, including international organisations; sovereigns excluded | Company or financial institution, onshore or offshore |
| Instrument types | Green, social, sustainability, sustainability-linked and transition loans | Green, social, sustainability, sustainability-linked and transition bonds |
| Minimum size | S$20 million (or equivalent) | S$200 million, or a programme of at least S$200 million with an initial issuance of at least S$20 million |
| Minimum tenor | 3 years | 1 year |
| Other conditions | Refinancing of an existing sustainable loan is excluded | Issued and listed in Singapore, included under the SGX Sustainable Fixed Income Initiative, declared a Qualifying Debt Security, with a pre-issuance external review or rating |
| Funding | 100% of eligible expenses | 100% of eligible expenses |
| Cap per instrument | S$100,000, or S$125,000 if the borrower complies with an internationally recognised disclosure standard | S$100,000, or S$125,000 if the issuer complies with an internationally recognised disclosure standard |
| Maximum instruments | 2 per borrower | 2 per issuer |
| Apply by | 3 months after the loan origination date | 3 months after the issue date |
MAS gives TCFD, ISSB and ESRS as examples of internationally recognised disclosure standards. A company already preparing ISSB-based climate disclosures therefore qualifies for the higher cap. If you are preparing your first such report, our guide to climate-related disclosures in Singapore explains who must report and when.
What counts as an eligible expense?
For a sustainable loan, eligible expenses are costs directly attributable to the loan for engaging sustainability advisory and assessment providers, covering:
- developing the loan framework or sustainability performance targets
- external review or assurance before and after the loan is originated
- reporting on use of proceeds or on achievement of the targets
Advisory services provided by the arranging bank are not covered, and ESG ratings have been removed from the list. The funding period is three years from the loan origination date, so post-origination reviews in that window can be included. For transition and sustainability-linked loans, the annual external review documents produced under the scheme must be shared with MAS.
For a sustainable bond, eligible expenses are:
- independent external review or rating costs under recognised green, social or sustainability bond principles
- a pre-issuance review showing alignment with recognised principles or standards
- post-issuance review or reporting, annually for the first three years or the bond’s tenure, whichever is shorter
- a taxonomy alignment review against the Singapore-Asia Taxonomy or another recognised taxonomy
Bond reviews must be done by external reviewers in Singapore, and any sustainability advisory or assessment work must be done by Singapore-based financial institutions where applicable. Sustainability-linked bonds need post-issuance reviews or reporting each year for the first three years or the tenure, whichever is shorter. Transition bonds need a publicly disclosed entity-level transition plan, and the proceeds must align with a transition category under the Singapore-Asia Taxonomy or an equivalent international taxonomy.
How do you apply?
- Decide early. Tell the lenders or arrangers at term-sheet stage that you intend to claim, so that external review engagements are with eligible providers and invoices are separable.
- Engage the right providers. For a loan, use independent sustainability advisory and assessment providers, not the arranging bank’s own advisory team. For a bond, use external reviewers in Singapore.
- Sign the loan or issue the bond on terms that meet the size and tenor thresholds.
- Request the application form from MAS. The SLGS page asks applicants to write to [email protected], although the email link on that page points to [email protected]; the SBGS page uses [email protected]. Copying both avoids delay.
- Submit within three months of the loan origination date or bond issue date.
- Keep reporting. Share annual external reviews with MAS where required, and claim later review costs that fall within the funding period.
Documents checklist
- Signed facility agreement or bond offering documents, showing size, tenor and the sustainable label
- The sustainability framework and, for linked instruments, the performance targets
- Pre-origination or pre-issuance external review, second-party opinion or rating
- Engagement letters and invoices from each review or advisory provider, with proof of payment
- Evidence of compliance with a recognised disclosure standard, if claiming the S$125,000 cap
- For bonds: evidence of SGX listing, inclusion in the SGX Sustainable Fixed Income Initiative and QDS status
- For transition instruments: the published transition plan and taxonomy alignment
Example: a sustainability-linked loan for a logistics group
Example (hypothetical): A Singapore logistics group signs a S$60 million, five-year sustainability-linked loan tied to fleet emissions targets. It pays an independent consultant S$70,000 to build the framework and targets, S$40,000 for a pre-origination second-party opinion, and plans annual target verification at S$15,000 a year for three years. Eligible costs within the three-year funding period total S$155,000. The group does not yet report under any international disclosure standard, so the cap is S$100,000. Had it already been reporting under ISSB-based standards, the cap would have been S$125,000. Advice from the arranging bank’s own sustainability desk would not have counted. The group applies within three months of signing.
Common reasons claims fail
- Too small or too short: loans under S$20 million or under three years, and bonds under the S$200 million threshold.
- Refinancing: refinancing an existing green, social, sustainability, sustainability-linked or transition loan is excluded.
- Arranging bank advisory: not an eligible loan expense.
- ESG ratings: removed from the loan scheme’s eligible expenses.
- Bond not listed in Singapore or not included in the SGX Sustainable Fixed Income Initiative.
- Late application: the three-month window runs from origination or issue.
- Third instrument: each borrower or issuer is limited to two.
Can these grants be combined with other support?
For bonds, MAS’s Global-Asia Bond Grant Scheme co-funds 30% of eligible issuance expenses, capped at S$400,000 for rated and S$200,000 for unrated issuances, until 31 December 2029, and its minimum size rule refers to SBGS applicants, so the two schemes are designed to work together for qualifying issuers. Check the eligibility of each scheme separately and never claim the same invoice twice.
Smaller companies that cannot reach a S$20 million facility may instead look at green financing through Enterprise Singapore’s Enterprise Financing Scheme, covered in our EFS guide for SMEs, or at the Sustainability Reporting Grant for a first climate report. A sustainable loan is still a borrowing, so the board should approve it in the usual way; see our note on corporate resolutions for financing. Our Financial Sector Development Fund guide covers the fund behind these grants, and the directory of Singapore government grants for companies lists support in every sector.
Frequently asked questions
Can a foreign company claim the Sustainable Loan Grant?
Yes. MAS allows companies and financial institutions based onshore or offshore, including international organisations. Sovereigns are excluded.
Does the grant reduce the interest rate?
No. It reimburses external review, framework and reporting costs only. Pricing is a matter between the borrower and the lenders.
How do we get the higher S$125,000 cap?
By complying with an internationally recognised disclosure standard. MAS names TCFD, ISSB and ESRS as examples.
Can we claim post-signing verification costs?
For loans, yes, within the three-year funding period from origination. For bonds, post-issuance reviews or reporting for the first three years (or the tenure, if shorter) are eligible.
Is a transition loan eligible?
Yes. Transition loans and transition bonds are both covered, and transition bonds must meet MAS’s transition plan and taxonomy conditions.
Where are the official rules?
On the MAS pages for the Sustainable Loan Grant Scheme, the Sustainable Bond Grant Scheme and the Global-Asia Bond Grant Scheme.
Information checked against official sources on 6 November 2026.
Free grant consultation: is SLGS or SBGS right for your company?
Raffles Corporate Services has in-house certified grant consultants who are experienced with Singapore grant applications and the full grant process, from checking eligibility and preparing the proposal and supporting documents to submitting claims and meeting the conditions after approval. We can arrange a free consultation to review your company and identify which grants, including SLGS or SBGS, may be applicable.
Email [email protected] or WhatsApp +65 8501 7133 to book a time. MAS decides every application, and no consultant can guarantee approval.
Kevin Yeo, Raffles Corporate Services