EXIM Thailand celebrates the success of issuing environmental bonds to support clean energy projects

  EXIM Thailand celebrates the success of issuing environmental bonds to support clean energy projects Strengthening the role of the Development Bank and the United Nations Sustainable Development Goals

Dr. Rak Worakijpokathorn, Managing Director Export-Import Bank of Thailand (EXIM Thailand) held a press conference together with Mr Kosin Pungsophon, an expert in the financial sector. Department of Economic Research and Regional Cooperation of the Asian Development Bank (ADB). Prakob Piancharoen CEO For large business and investment banking customers Bank of Ayudhya Public Company Limited and Ms. Papakorn Rattanaset, Deputy Director of Investment and Financial Management Group, Government Savings Bank, at the head office of EXIM Thailand on September 21, 2022 that EXIM Thailand has been extremely successful in offering 2 green bonds totaling 5,000 million baht on September 9th to come In order to raise funds to support loans for clean energy projects, with ADB as consultant for the Sustainable Finance Framework, the Government Savings Bank manages the bond underwriters. and Bank of Ayudhya PCL as bond sales manager. and registrar Thailand’s EXIM bonds have been well received by leading investors and are able to raise money at favorable interest rates during periods of money market instability and rising interest rates.

bonds are divided into “Export-Import Bank of Thailand Environmental Bonds No. 1/2022, Series 1, Maturity Year 2025” (Brand Series 1), maturity 3 years, fixed interest rate 2.25% per annum Interest payment every 6 months through throughout the term bond, totaling 3 million units, worth 3,000 million baht, and “Export-Import Bank of Thailand Environmental Bonds No. 1/2022, Series 2, maturity year BE 2026” (4-year bond, compounded THOR + 0.34% per annum, payable every 6 months throughout the term of the bond, totaling 2 million units, worth 2,000 million baht).

EXIM Thailand is the first state-owned specialist financial institution to establish a sustainable fundraising framework. and issuing environmental bonds with reference to THOR (Thai Over Night Repurchase) interest rates, the first in Thailand To support transactions based on the THOR interest rate in line with the Bank of Thailand’s goals, EXIM Thailand intends to raise funds from under the sustainable fundraising framework. Under the role of the Development Bank of Thailand (The Development Bank of Thailand) it links development in economic dimensions with society and the environment. This is in line with the Sustainable Development Goals (SDGs) in line with United Nations guidelines. including the confirmation that the Thai government has joined the 26th session of the United Nations Framework Convention on Climate Change (COP 26) to achieve net zero emissions by 2065.

In the past, EXIM Thailand has provided financial support to bioeconomy businesses. circular economy and the green economy (Bio-Circular-Green Economy: BCG Economy) already accounted for about 30% of the bank’s total loan portfolio, or about 50 billion baht. In the future, EXIM Thailand aims to expand loans to BCG businesses to 100 billion baht by 2027 to join the global community to reduce net greenhouse gas emissions to zero EXIM Thailand will work closely and actively with the relevant government and private sectors to promote and develop a Zero Waste system, bringing factory waste back into the production process Recycle and use resources for maximum benefits, creating a Thai supply chain that connects to a clean world supply chain and leads to the sustainable development of all sectors.

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