UOB and IRPC upgrade their trade finance services, referencing the S&P Global ESG Score, to further develop sustainable finance in Thailand.

UOB Thailand and IRPC Public Company Limited are continuing to promote sustainable finance through a trade finance facility linked to ESG performance. This marks a significant step in integrating sustainability goals with working capital management, supporting the transition to a low-carbon economy and enhancing the long-term competitiveness of Thai industries.

Bangkok, June 23, 2569 – UOB Thailand has supported IRPC Public Company Limited (IRPC) in signing a sustainability finance cooperation agreement. This includes a Sustainability-Linked Trade Facility, utilizing the S&P Global ESG Score as a key coordinating factor for the loan. This marks another significant step in integrating ESG goals into working capital management and supply chain transactions within the Thai industrial sector. The loan reflects the growing trend in the business sector, where ESG plays a crucial role in enhancing competitiveness, accessing financing, and ensuring sustainable long-term growth.

The structure of the Sustainability-Linked Trade Facility was developed under UOB's Sustainability-Linked Loan Principles, an international standard, which stipulates that IRPC's ESG performance is linked to the financial terms of the loan through the S&P Global ESG Score, a key indicator encompassing environmental, social, and governance (ESG) assessments. This collaboration marks IRPC's first time linking a loan to promote business growth while simultaneously creating tangible ESG outcomes, and supporting the transition to a low-carbon economy.

Ms. Veeranong Jiranakorn Pootrakul, Managing Director, Deputy CEO and Wholesale Banking, UOB Thailand, stated that: “Thai businesses are facing heightened expectations from investors, customers, and partners worldwide to concretely integrate sustainability into their business operations. The role of financial institutions today has expanded from providing capital support to designing financial instruments that incentivize businesses to make real changes. UOB's Sustainability-Linked Trade Facility directly links ESG goals to trade transactions and working capital management—key mechanisms for industrial operations. We believe that such financial instruments will play an increasingly important role in supporting Thai businesses to grow competitively, while systematically transitioning to a low-carbon economy.”

Ms. Thosaeng Chaiyapravat, Senior Vice President, Accounting and Finance, IRPC Public Company Limited (IRPC) “IRPC is committed to continuously enhancing its ESG operations to align with international standards. This collaboration not only reflects the organization's commitment to sustainability but also demonstrates the concrete linkage of ESG performance to financial mechanisms. This strengthens competitiveness, increases stakeholder confidence, and creates long-term economic, social, and environmental value.”

This collaboration reflects a new financial approach that views sustainability as central to business operations and future growth. In a context where sustainability-linked financial instruments are gaining increasing popularity globally, the partnership between UOB and IRPC demonstrates the role of the financial and industrial sectors in jointly driving sustainable financial innovation. It reinforces the integration of ESG principles into business strategies and financial management, elevates Thailand's sustainable finance standards, and supports the transition to a globally competitive low-carbon economy.

Read all GREEN FINANCE news here.