UOB supports Bangchak

Editorial Staff

UOB supports Bangchak Group with financing facilities for trade operations and transition to low-carbon fuels

United Overseas Bank (UOB) has announced its financing support to Bangchak Corporation Plc as the company scales up the business in Thailand with the vision to pioneer sustainable energy with low-carbon fuels.

Bangchak Corporation is the first company in Thailand to receive UOB’s Transition Finance Framework, which is designed to assist carbon-intensive companies in their decarbonization journeys.

UOB’s Transition Finance Framework encompasses a wide range of transition activities, including the adoption of low-carbon fuels, enhancements in operational efficiency, carbon capture utilization and storage, as well as participation in voluntary carbon credit programs.

A comprehensive suite of Transition Finance solutions has also been introduced to bolster companies and their associated networks in participating in these pivotal transition efforts.

UOB has provided a total amount of US$290 million in trade and transition financing facilities to support the expanding operations of the company’s refinery business for companies under Bangchak Group including Bangchak Corporation Pcl., CP Trading Pte Ltd, and its newly-acquired subsidiary Esso (Thailand) Pcl. This includes trade finance facilities for the import of crude oil to Bangchak’s refineries and a working capital of US$30 million toward the group’s bio-based product business.

Mr Tan Choon Hin, president and CEO, UOB Thailand, said “As a long-term financial partner with Bangchak Group, the company continues to expand and push the boundaries for the energy industry. With our diverse suite of financial solutions, we are able to support the company’s growth alongside its social and environmental stewardship.”

The latest support reflects the shared vision towards balancing growth with sustainability. Bangchak Group is a leader in the oil refining industry that is committed to accelerate sustainable energy transition, while balancing energy security. With UOB’s transition finance solutions, the bank is leading the banking industry in helping carbon-intensive, fossil fuel-based and hard-to-abate sectors looking to decarbonize with its responsible financing.

Mr Chaiwat Kovavisarach, Group CEO and president, Bangchak Corporation Plc said Bangchak is committed to developing sustainable business innovation in harmony with the environment and society.

The company implemented the BCP316NET plan with the goal of achieving Carbon Neutrality by 2030, and Net GHG Emissions by 2050. The first part of the plan “Breakthrough Performance” (B) addresses enhancements to efficiency, work processes, carbon emissions, and environmental friendliness.