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UOB Funds Bangchak Group's Green Energy Transition in Thailand

United Overseas Bank (UOB) has proudly extended its financial support to Bangchak Corporation Public Company Limited as the company expands its presence in Thailand with a forward-looking commitment to pioneering sustainable energy through the use of low-carbon fuels.

Bangchak Corporation stands as the inaugural recipient of UOB’s Transition Finance Framework in Thailand, an initiative meticulously designed to assist carbon-intensive companies in their journeys towards decarbonization. The Transition Finance Framework by UOB encompasses a diverse array of transition activities, including the adoption of low-carbon fuels, enhancements in operational efficiency, carbon capture utilisation and storage, as well as participation in voluntary carbon credit programs. To bolster companies and their affiliated networks in undertaking these crucial transition endeavors, UOB has introduced a comprehensive suite of Transition Finance solutions.

UOB has extended a total of US$290 million in trade and transition financing facilities to support the expanding operations of the companies under the Bangchak Group umbrella. This includes Bangchak Corporation Pcl., BCP Trading Pte Ltd, and the newly-acquired subsidiary, Esso (Thailand) Pcl. These facilities encompass trade finance support for the import of crude oil to Bangchak’s refineries, alongside a working capital injection of US$30 million for the group’s bio-based product business.

Mr. Tan Choon Hin, President and CEO of UOB Thailand, expressed, “Our longstanding financial partnership with Bangchak Group has deepened as the company continues its expansion and sets new benchmarks in the energy industry. With our diverse suite of financial solutions, we are poised to support the company’s growth while aligning with its commitment to social and environmental stewardship.”

This latest show of support underscores a shared vision focused on balancing growth with sustainability. Bangchak Group stands as an industry leader in oil refining, committed to accelerating the transition towards sustainable energy while upholding energy security. With UOB’s Transition Finance Solutions, the bank leads the financial sector in aiding carbon-intensive, fossil fuel-based, and challenging-to-decarbonize sectors in their pursuit of responsible financing and decarbonization.

In October of the previous year, UOB made a significant commitment to achieve net-zero emissions across six sectors by 2050. Oil and Gas is one of these sectors within the energy value chain that the bank aims to support financially as companies pivot their business models toward environmentally friendly activities.

Mr. Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation Public Company Limited, remarked, “As a leader in energy transition, Bangchak is committed to developing sustainable business innovations in harmony with the environment and society. Bangchak has 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, which 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 toward a low-carbon society, fostering business growth alongside social and environmental sustainability.”

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