20 September 2022
UOB Malaysia partners SJPP to provide $219M in green financing to SMEs
UOB Malaysia is partnering Syarikat Jaminan Pembiayaan Perniagaan (SJPP), a wholly-owned company of Minister of Finance Inc, to launch the U-Green Financing program, which will support small and medium-sized enterprises (SMEs) in embracing sustainability.
The bank has allocated MYR1 billion ($219.63 million) for this program, and SJPP will be guaranteeing up to 80 percent of the loans through its PEMULIH Government Guarantee Scheme (PGGS), according to a statement.
UOB Malaysia is the first bank to tie up with SJPP on a green financing program.
U-Green Financing is available to eligible SMEs and mid-sized companies from all industries looking to contribute to smart sustainable cities. Companies will also be eligible if they want to develop or construct green buildings, facilitate green trade, or contribute to a circular economy.
Open to both existing UOB Malaysia customers as well as those new to the bank, the facilities are available in the form of term loans, overdraft facilities and trade financing.
In addition to providing financing, UOB Malaysia will also be collaborating with the Malaysian Research Accelerator for Technology and Innovation (MRANTI) to establish an ESG workshop series to equip SMEs with knowledge and practical insights to embark on their ESG journeys.
Through the workshops, SMEs will benefit from a syllabus that is co-developed by MRANTI and its approved training providers.
“While the MRANTI workshop will assist SMEs in acquiring the necessary knowledge to embrace ESG, our partnership with SJPP will provide the financing support to help them kick-start their sustainability journey,” UOB Malaysia Chief Executive Officer Ng Wei Wei said. “By making green financing more accessible, we hope to encourage SMEs to adopt sustainable business practices. This will boost their ESG profile, especially if they are keen to participate and compete in the global value chain.”
SJPP Principal Officer Chen Yin Heng said that the proposed collaboration is in line with the national goal to achieve net-zero emissions by 2050.
“SJPP, via its guarantee schemes, is committed to supporting the government’s effort to boost economic growth, especially within the SME sector. Many strategic initiatives and policies have been put in place with the aim to spur and develop business opportunities for this sector.
(Web source: https://technode.global/2022/09/20/uob-malaysia-partners-sjpp-to-provide-219m-in-green-financing-to-smes/)