KUALA LUMPUR (Nov 14): Wasco Bhd (KL:WASCO), an integrated energy group, has secured its first sustainability-linked loan of US$25 million (RM112 million).
The loan, established within a Sustainable and Transition Finance Framework, will be utilised to support Wasco’s ongoing capital expenditure projects, particularly at its Batam, Indonesia yard.
Additionally, the loan aligns with the company’s commitment to decarbonisation and sustainable growth, according to a joint statement by Wasco and on Maybank Investment Bank Group (Maybank IB Group) on Thursday.
The new framework, designed in accordance with the Asean Taxonomy for Sustainable Finance, outlines eligible transition projects, setting clear guidelines for Wasco’s sustainable initiatives.
These projects, which will be funded through the loan, are part of the company’s broader strategy to decarbonise its operations and support its energy clients in their own transition to more sustainable practices.
At the heart of Wasco’s sustainability goals is its aim to achieving net-zero greenhouse gas (GHG) emissions for Scope 1 and 2 by 2026.
Additionally, the company is targeting a 30% reliance on renewable energy by 2024, with an ambition to reach 40% by 2035, based on a 2023 baseline.
Wasco’s managing director and group chief executive officer (CEO) Giancarlo Maccagno emphasised the importance of this framework in future-proofing the company’s operations.
“This framework enables Wasco to deliver sustainable value to our energy clients as they transition, while also positioning us to serve emerging industries, such as sustainable bioenergy, carbon capture and storage, offshore wind, and solar,” Maccagno said in the statement.
Maybank IB acted as the sole sustainability adviser for the framework.
“This framework provides clarity and confidence to Wasco and banks to finance decarbonisation initiatives,” said Maybank IB Group CEO Michael Oh-Lau in the statement.
“With this, we are proud to collaborate with Wasco in developing solutions and contributing towards greening supply chains in the energy sector,” he added.