PETALING JAYA: HSBC Malaysia has inked a sustainable financing deal with Kelington Group to support its maiden venture into the manufacturing of liquefied carbon dioxide (LCO2), via a RM25 million term loan to partly fund the construction of the LCO2 plant.
The bank explained that the plant in Kerteh, Terengganu sources the raw gas used to manufacture the LCO2 from a local oil and gas company via a long-term contract, and without the plans, the raw gas would be released into the environment as waste.
“Given this, this venture will also effectively help to reduce carbon emissions released into the environment,” it added.
This is the first LCO2 project for Kelington, which principally provides ultra-high purity gas delivery solutions to world renowned electronics and semiconductor players.
Generally, LCO2 can be used in food and beverage, fabrication, as well as construction industry.
HSBC pointed out the deal with Kelington is another example of developing industry leading sustainable product offerings. In the past it had issued the world’s first United Nations Sustainable Development Goals bond and sukuk.
HSBC Malaysia country head of corporate, commercial banking Karel Avni Doshi (pix) commented that the bank is honoured to continue supporting Kelington as it grow its business further.
“This is also a good example of how we are enabling our Malaysian customers to achieve their sustainability goals. This deal further reaffirms HSBC’s ambition in becoming the industry leader for sustainable financing in Malaysia and globally,”” she said in a press release.
The bank revealed that it aspires to be a leader in sustainable financing, managing and shaping the shift to a low-carbon world.
Towards achieving that goal, the HSBC Group has set out a series of commitments globally in support of this goal, including a pledge to provide US$100 billion to sustainable financing and investments by 2025.
