KUALA LUMPUR: UOB Malaysia has launched U-Solar 2.0, an expansionto its existing U-Solar programme, to simplify access to sustainable financing for local solar engineering, procurement, construction and commissioning (EPCC) contractors and project developers.

In a statement today, UOB said the latest enhancement will expand the programme's offerings to industry players across the entire solar value chain.

"The programme will ensure a smooth flow of financing with improved payment terms for solarcontractors and developers to help them meet the growing demand for solar energy while connectingthem to leading equipment suppliers across the region," it said.

UOB Malaysia chief executive officer Ng Wei Wei said, since the launch of U-Solar, the bank has provided close to RM1 billion in solar financing for corporates, small and medium enterprises (SMEs), and homeowners.

"We expect to boost our sustainable financing for solar energy by 50 per cent in the next 12 months, driven by the favourable outlook of the solar energy industry and the government's strong push towards renewable energy.

"With the expanded programme, we look forward to supporting the solar ecosystem players in seizing new opportunities and accelerating the development of the country's green sector," she said.

U-Solar 2.0 will provide contractors and developers with extended payment terms when they purchasefrom the programme's approved equipment suppliers. Part of the programme's suite of solutions isgreen trade financing.

"This is designed to address cash flow issues and working capital gaps for developers and contractors who typically have longer projects receivable terms and may face short payment terms from equipment suppliers.

"With U-Solar 2.0, they will be able to finance the purchase of equipment and work on multiple solar projects simultaneously, speeding up the rate of solar adoption in the region," the bank added.