KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) is allocating up to RM1bil to finance oil and gas services and equipment (OGSE) suppliers under the PETRONAS Suppliers Support Programme (PSSP).
This funding is part of the bank's newly launched Sustainable Vendor Financing Programme (SVFP), aimed at supporting the sector's decarbonisation and energy transition efforts.
UOB Malaysia, in a statement, said the SVFP offer transition financing solutions with competitive rates for OGSE companies participating in PSSP. It also provides incentives to help these companies begin their decarbonisation efforts, such as adopting renewable energy, improving energy efficiency, reducing emissions, and electrifying their fleets.
Chief executive officer Ng Wei Wei said the launch of the SVFP reflected its 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 decarbonisation 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,” she said.
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.
