UOB Malaysia Launches RM1 bln Sustainable Financing Programme For OGSE Sector

KUALA LUMPUR, Oct 14 (Bernama) -- United Overseas Bank (Malaysia) Bhd today launched its Sustainable Vendor Financing Programme (SVFP) to support Malaysia's oil and gas services and equipment (OGSE) sector in its decarbonisation and energy transition efforts, offering financing of up to RM1 billion.

In a statement, the bank said the financing is designed to assist OGSE suppliers participating in the Petronas Suppliers Support Programme (PSSP).

UOB Malaysia chief executive officer Ng Wei Wei said that the launch of the SVFP reflects the bank's commitment to helping Malaysia’s OGSE sector transition towards sustainability.

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“As Petronas is our valued partner, we are pleased to extend our support to their suppliers, which are predominantly small and medium-sized enterprises, to help them embark on their decarbonisation journey.

“This will also help the country’s OGSE sector stay competitive in the global value chain, with heightened expectations on environmental, social, and governance (ESG) related regulations being implemented across the world,” she said.

The bank stated that the SVFP comprises transition financing solutions with competitive rates tailored for OGSE companies participating in the PSSP.

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“It also includes meaningful incentives for these companies to kickstart their decarbonisation initiatives, such as the adoption of renewable energy, improvements in energy efficiency, emission reduction measures, and fleet electrification.

“The SVFP also introduces measures for OGSE companies to track and demonstrate progress in their sustainable practices. This includes completing capacity-building modules, establishing baseline greenhouse gas (GHG) reporting, and demonstrating annual GHG reductions,” it added.

-- BERNAMA