Wasco launches Asean’s first sustainable finance framework with US$25mil green loan

Wasco Bhd, an integrated energy group, has introduced ASEAN’s first Sustainable & Transition Finance Framework, marking a significant milestone in sustainable finance. The company has also completed its inaugural sustainability-linked loan of US$25 million under this framework. Maybank Investment Bank Bhd served as the sole sustainability adviser, with Maybank's Singapore branch acting as the sole lender.

The newly launched framework is notable for defining eligible transition projects in accordance with the latest ASEAN Taxonomy for Sustainable Finance (Version 3). It also aligns with the International Capital Market Association (ICMA) Climate Transition Finance Handbook, further enhancing its credibility in the region.

The framework supports Wasco’s goal of achieving net-zero greenhouse gas (GHG) emissions for Scope 1 and 2 by 2026. It includes specific sustainability performance targets (SPTs), such as increasing reliance on renewable energy to 30% by 2024 and 40% by 2035, compared to a 2023 baseline. The loan will help fund Wasco’s capital expenditures for its yard in Batam, Indonesia.

Wasco’s managing director and CEO, Giancarlo Maccagno, emphasized that the framework will allow the company to remain adaptable in financing a wide range of sustainability initiatives, including projects in bioenergy, carbon capture and storage, offshore wind, and solar energy.

Maybank Investment Bank Group CEO, Michael Oh-Lau, highlighted that this framework provides clarity for both Wasco and financial institutions, facilitating the financing of decarbonisation projects. He also noted that Maybank is the first Malaysian bank to launch a Transition Finance Framework in ASEAN, underscoring the growing importance of sustainable finance in the region.