UOB Launches Inaugural Sustainability-Linked Trade Facility with Chandra Asri

The credit facility of US$100 million will boost Chandra Asri’s supply chain resilience while demonstrating its commitment to ESG priorities

UOB has partnered with PT Chandra Asri Petrochemical, Tbk (Chandra Asri) to launch the bank’s first-ever Sustainability-Linked Trade financing facility in Indonesia. This US$100 million facility is being provided under UOB’s Green and Sustainable Trade Finance and Working Capital Framework, which seeks to support clients’ long-term sustainability goals.

Through this facility, Chandra Asri can tap UOB’s financing at preferential rates based on its sustainability scores, as assessed by an independent global sustainability assessment agency. The programme will advance Chandra Asri’s Environmental, Social and Governance (ESG) priorities and improve the company’s supply chain resilience. As a result, it will enhance the company’s ability to meet the demand for industrial petrochemicals in Indonesia.

Mr Harapman Kasan, Wholesale Banking Director, UOB Indonesia, said, “We are proud to partner Chandra Asri to provide our first Sustainability-Linked Trade financing solution in Indonesia. As a bank, it is our responsibility to support our customers to achieve their sustainability goals. We will continue to provide our clients with quick and simple access to sustainable financing solutions, which will in turn support the government and the wider community to forge a sustainable future together.”

Mr Andre Khor, Chief Financial Officer, Chandra Asri, said, “Chandra Asri is proud to collaborate with UOB on this market-leading facility. Our institutions share a joint commitment to ESG goals, which are critical components of our organizational DNA. This Sustainability-Linked trade financing facility is well in alignment with the sustainability targets established under Chandra Asri’s Corporate Sustainability Framework, which is deeply interwoven into our short, medium and long-term strategic decisions.”

Aligned with the United Nations Sustainable Development Goals (SDGs), UOB’s sustainable financing frameworks enable companies to apply for green or sustainability-linked banking products without having to develop their own financing frameworks. Other than the Green and Sustainable Trade Finance and Working Capital Framework, the bank also has frameworks for smart cities, green building developers and owners, as well as the circular economy.

Chandra Asri is the largest integrated petrochemical producer in Indonesia and operates the country’s only Naphtha cracker. The commitment to sustainability-linked trade finance is the manifestation of the company’s continued focus and commitment towards environmental sustainability, as part of its holistic Sustainability Framework and focus on ESG principles. It is working to develop a second world-scale petrochemical complex (CAP 2), which will contribute to Indonesia’s industrial development.

About UOB Indonesia

UOB Indonesia is a subsidiary of UOB, a leading bank in Asia with a global network of around 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. Established in 1956 through PT Bank Buana Indonesia, PT Bank UOB Indonesia was formed after a merger with PT Bank UOB Buana, which marked the existence of UOB Indonesia for more than a decade in Indonesia.

UOB Indonesia’s service network comprises 41 branch offices, 107 sub-branch offices and 150 ATMs across 30 cities in 18 provinces in Indonesia. UOB Indonesia’s banking services are accessible through its regional ATM network, the ATM Prima and Bersama networks and the Visa network.

UOB Indonesia is committed to providing quality products and excellent customer service. The Bank offers various banking products and services categorised into digital bank, personal financial services, business banking, commercial banking, corporate banking, global markets and investment management. UOB Indonesia is rated AAA (idn) by Fitch Ratings.

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