UOB grants green trade finance facilities to Musim Mas, Barramundi Group
More than S$90b of trade flows meet green and sustainable requirements in Singapore.
UOB has extended its first green trade finance facilities to Musim Mas Group and Barramundi Group, with the goal of helping the two build on their sustainable initiatives and strengthen their supply chain resilience.
The facilities, whose amounts were undisclosed, are under the Green Finance Industry Taskforce’s Green and Sustainable Trade Finance and Working Capital Framework.
Palm oil merchandiser and distributor Musim Mas Group says that it will use the funding for its working capital needs, in particular for sourcing certified palm oil from responsible suppliers.
Barramundi Group, a barramundi aquaculture company, plans to use the funding to source sustainable raw materials, such as using climate-resilient and sustainable technologies. This is part of its plans to expand its sustainability initiatives for greater resilience and security in the seafood ecosystem.
There is more than S$1t worth of trade that flows through Singapore, according to data from Singstat. Of these, more than S$90b meets the requirements of being green and sustainable, according to Frederik Chin, head of group wholesale banking and markets. UOB.
These trade flows provide an immense opportunity for UOB to work with companies to offer green trade financing and to support their trade flows through our regional network capabilities, he added.
“Companies that qualify for a green trade financing facility have taken steps to mitigate their environmental, social and governance risks such as identifying suppliers with good overall management practices and building more resilient supply chains,” said Chin. “They are also at the forefront of an industry megatrend.”
In order to qualify for green trade financing from UOB, Musim Mas Group and Barramundi Group both outlined a clear sustainability strategy and provided documents that show how the funds will be used, the bank said. This is the same for other companies that wish to qualify for green trade financing.
They also need to submit records that demonstrate the positive sustainability outcomes from their business activities or trades related to the green trade financing.