KUALA LUMPUR: Wasco Bhd
, an integrated energy group, has launched Asean's first Sustainable & Transition Finance Framework and completed its inaugural sustainability-linked loan of US$25mil under the framework.
Maybank Investment Bank Bhd acted as the sole sustainability adviser, while Maybank, Singapore branch is the sole lender.
In a joint statement, it said the framework is the first in Asean to define eligible transition projects based on the latest Asean Taxonomy for Sustainable Finance (Version 3).
The framework outlines how Wasco and its subsidiaries plan to undertake Sustainability Finance Transactions (SFTs) using the Use of Proceeds, Sustainability-linked, and Transition Finance formats, aligned with the ICMA Climate Transition Finance Handbook—another first in Asean.
The loan, tied to Wasco’s Sustainability Performance Targets, will contribute towards the company’s funding plans and shall be utilised to finance capital expenditures for their yard in Batam, Indonesia.
Wasco is committed to achieving net zero greenhouse gas (GHG) emissions for Scope 1 and 2 by 2026, reaching 30% renewable energy reliance by 2024 and 40% by 2035 (from a 2023 baseline), and maintaining a zero lost-time incident rate and zero fatalities.
“This framework enables Wasco to future-proof and deliver sustainable value to our energy clients as they transition, while positioning us to serve emerging industries like sustainable bioenergy, carbon capture and storage, offshore wind, and solar.
“It also allows Wasco to maintain full flexibility in accessing sustainable finance across various types, formats and currencies to support specific sustainability objectives and projects,” Wasco managing director/group chief executive officer (CEO) Giancarlo Maccagno.
Meanwhile, Maybank Investment Bank Group CEO Michael Oh-Lau said: “This Framework provides clarity and confidence to Wasco and banks to finance decarbonisation initiatives. Maybank is the first Malaysian bank to launch a Transition Finance Framework, which is also the first of its kind in Asean. With this, we are proud to collaborate with Wasco in developing solutions and contributing towards greening supply chains in the energy sector.”
