HSBC Malaysia seals sustainable financing deal with Kelington Group in its maiden venture

HSBC Malaysia has announced its support for Kelington Group’s (Kelington) maiden
venture into the manufacturing of liquefied carbon dioxide (LCO2) via a
sustainable financing deal.

The Bank provided Kelington with a RM 25 million term loan to partly fund the construction of its LCO2 plant. Kelington provides ultra-high purity (UHP) gas delivery solutions to world renowned electronics and semiconductor players. Apart from UHP, it is also involved in process re-engineering and general contracting.

“HSBC Malaysia is honoured to continue supporting Kelington as they grow their business further. Our deep understanding of Kelington’s business allows us to lead the strategic dialogue with them and provide timely financing solutions that cater to their specific needs,” said Karel Avni Doshi, Country Head of Corporate, Commercial Banking, HSBC Malaysia.

“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,” added Karel.

This is the first LCO2 project for Kelington. Located in Kerteh, Terengganu, Kelington’s LCO2 plant sources the raw gas send to manufacture the LCO2 from a local oil and gas industry leader via a long-term contract.  Given this, this venture will also effectively help to reduce carbon emissions released into the environment.

In 2017, HSBC issued the world’s first United Nations (UN) Sustainable Development Goals (SDGs) bond followed by the world’s first UN SDG sukuk by HSBC Amanah in Malaysia. Earlier this year HSBC also acted as the sole sustainability structuring bank for a market leading Sustainability-Linked Financing (SLF) reinforcing the Bank’s commitment to support the shift to a low carbon economy.

HSBC Malaysia has been providing financial support to Kelington since 2008
and it is the anchor bank which supports the Group’s business in both ASEAN
and China.

 

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