UOB supports Bangchak Group with financing facilities
United Overseas Bank (UOB) has announced its financing support to Bangchak Corporation Public Company Limited 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 decarbonisation 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., BCP 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, our relationship has further deepened as 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 decarbonise with its responsible financing.
Last October, UOB announced commitment to reach net zero across six sectors by 2050. Oil and Gas is one of the sectors as part of the energy value chain the Bank aims to provide financial supports as companies pivot their business models towards more climate friendly activities.
Mr Chaiwat Kovavisarach, Group Chief Executive Office and President, Bangchak Corporation Public Company Limited said “As a leader in energy transition, Bangchak is committed to developing sustainable business innovation in harmony with the environment and society. Bangchak 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. This is tangibly reflected in various projects such as pioneering the production of sustainable aviation fuel (SAF), and five refinery products from Bangchak Phra Khanong Refinery that have lower carbon dioxide emissions than the national average of Thailand. The financing support and working capital provided by UOB will help drive various Bangchak operations to transition to a low-carbon society, foster business growth alongside social and environmental sustainability.”
