UOB Malaysia launched U-Solar 2.0 as an expansion of its existing U-Solar program. This will make it easier to access sustainable financing for local solar EPCC contractors, and project developers.
UOB stated that the program’s latest enhancement will allow industry players to access the entire solar value chain.
It stated that the program would ensure smooth financing and better payment terms for solar contractors, developers, and other interested parties, in order to help them meet growing solar energy demand, as well as connect them with top equipment suppliers throughout the region.
Ng Wei Wei, chief executive officer of UOB Malaysia, stated that the bank has provided solar financing to corporates, small and mid-sized enterprises, and homeowners since U-Solar’s launch.
“The favorable outlook for the solar industry and the government’s strong support for renewable energy has led to us expecting to increase our sustainable financing of solar energy by 50% over the next twelve months.
She said, “With the expanded program, we look forward to supporting the solar ecosystem actors in seizing new opportunities to accelerate the development of the country’s green sector.”
U-Solar 2.0 will offer contractors and developers extended payment terms when they buy from approved equipment suppliers. Green trade financing is part of the program’s range of solutions.
This is a solution to cashflow problems and working capital gaps for contractors and developers who have typically longer project receivable terms but may be subject to short payment terms from equipment suppliers.
The bank stated that U-Solar 2.0 will allow them to finance equipment purchases and multiple solar projects simultaneously. This will increase the adoption rate in the region.
