UOB Malaysia grants IOI green trade finance facility to support its sustainable palm oil practices
Kuala Lumpur, Malaysia, 25 July 2022 – UOB Malaysia today announced that it has extended a green trade finance facility under the UOB Green and Sustainable Trade Finance Framework to IOI Corporation Berhad (IOI)1, one of Malaysia’s leading global integrated and sustainable palm oil players. The facility will help the company promote sustainable palm oil and strengthen global sustainable palm oil supply chain.
IOI’s responsible and sustainable practices, which include good agricultural practices, sustainable palm oil production and responsible sourcing of sustainable palm oil, represent its Group’s corporate responsibility and firm commitment. These are also fundamental prerequisites to UOB Malaysia’s assessment.
Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia said, “As a financial institution, UOB understands the critical role we play in supporting companies to achieve their sustainability-related targets and aspirations. To that end, we have been sharing our expertise on how they can use our sustainable finance products and solutions to boost their sustainability efforts. This collaborative approach helps to drive greater market adoption for green financing and encourages more businesses to grow responsibly.
“We are pleased to extend our green trade finance facility to IOI to help accelerate its sustainability agenda and to promote sustainable palm oil. IOI has taken important steps to mitigate its environmental, social and governance risks such as good overall agronomic practices and building more resilient supply chains. Furthermore, we are delighted that our green trade financing facility will also be supporting the global trade flows of palm oil, which is a key export for Malaysia.”
Working with IOI to strengthen the sustainable palm oil supply chain
The green trade financing facility extended to IOI will be channelled towards the sourcing of certified palm oil to support its downstream resource-based manufacturing business as well as its business partners’ activities. IOI’s integrated business activities range from upstream plantation to downstream resource-based manufacturing, which includes refining of palm oil as well as manufacturing of oleochemical and specialty oils and fats. All its Malaysian plantations are both RSPO and MSPO-certified2. Globally, it has a strong presence in Asia, Europe and the United States of America.
Dato’ Lee Yeow Chor, Managing Director and Chief Executive, IOI Corporation Berhad said, “As one of the leading global integrated and sustainable palm oil players, IOI aims to lead in sustainable palm oil production and be at the forefront of sourcing for sustainably-produced palm oil. UOB’s green trade financing facility supports our goal to promote sustainable palm oil and expand our green footprint as we progress towards net-zero emissions. We will continue to work with responsible suppliers and business partners in different parts of our business to strengthen the global sustainable palm oil supply chain.”
1 IOI Corporation Berhad is listed on the Main Market of Bursa Malaysia. The Group is involved in the palm oil plantation business which covers Malaysia and Indonesia. While it’s downstream resource-based manufacturing business includes refining of palm oil as well as manufacturing of oleochemical and specialty oils and fats.