UOB Malaysia has introduced its Sustainable Vendor Financing Programme (SVFP) to assist Malaysia's Oil & Gas Services and Equipment (OGSE) sector in its decarbonization and energy transition efforts. In the program's initial phase, the bank is allocating up to RM1 billion to finance OGSE suppliers involved in the PETRONAS Suppliers Support Programme (PSSP).
The SVFP comprises transition financing solutions with competitive rates tailored for OGSE companies participating in PSSP. It also includes meaningful incentives for these companies to kickstart their decarburization initiatives such as the adoption of renewable energy, improvement of energy efficiency, emission reduction measures, and fleet electrification.
In 2019, UOB Malaysia worked closely with PETRONAS on a Vendor Financing Programme that provided financial certainty to OGSE suppliers, enabling these suppliers to focus on delivering their projects on time and on-target. The relationship is further strengthened with the newly launched SVFP that comes under UOB’s Transition Finance Framework (TFF).
Ng Wei Wei, CEO of UOB Malaysia, said, “The launch of the Sustainable Vendor Financing Programme reflects our commitment to helping Malaysia’s OGSE sector transition towards sustainability. 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 decarbonization journey. This will also help the country’s OGSE sector stay competitive in the global value chain, with heightened expectations on ESG-related regulations being implemented across the world”.
The SVFP also implements measures for OGSE companies to monitor and showcase their progress in sustainable practices. These include completing capacity-building modules, establishing baseline greenhouse gas (GHG) reporting, and demonstrating annual reductions in GHG emissions.