Mr. Rak Worakitpokhathorn Managing Director The Export-Import Bank of Thailand (EXIM Thailand) reveals that EXIM Thailand has achieved great success. In the proposal of two bonds for the environment (Green Bond) worth a total of 5,000 million baht on September 9th. to raise money to support credit for clean energy projects The Asian Development Bank (ADB) is a consultant on the Sustainable Finance Framework through bond guarantors namely the Government Savings Bank and the Bank of Ayudhya (BAY).
“In the first 5,000 million baht, taking care of what is in the portfolio is considered a little, only 1-2 projects have gone. We will definitely issue bonds in the next series. Today is a market test. because at the beginning thought no one would pay much attention Because it has to hold for a long time and it is expensive, but when we see this kind of response, there are big investors who are interested, like GPF, Krungthai AXA . which gives feedback more than 2 times the target It makes us believe that good indeed There are people who have a vision for the future of the country that needs to be better than this, indeed exist. Maybe next year there might be something like this,” said Rak.
Mr Rak said EXIM Thailand is the first state-owned specialist financial institution. and established a framework for financing sustainability 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 targeted by the Bank of Thailand (BOT).
For bonds, they are divided into two sets:
1. “Export-Import Bank of Thailand Environmental Protection Bonds No. 1/2022, Series 1, Maturity Year 2025” (1st Band Series), 3-year term, fixed interest rate 2.25% per annum, payable every 6 months over the term of the bond, totaling 3 million units, worth 3,000 million baht.
2. “Export-Import Bank of Thailand Environmental Protection Bonds No. 1/2022, Series 2, Maturity Year 2026” (Bond Series 2), maturity 4 years, floating rate, THOR Compound +0.34% per annum, interest payment. Every 6 months throughout the bond term, 2 million units, worth 2,000 million baht.
“Thailand’s two EXIM bonds have been well received. from leading investors AND can raise money at a good interest rate. During periods of instability in the money market and interest rates are likely to rise,” said Rak.
In addition, EXIM Thailand plans to continue raising funds under the sustainability fundraising framework. under the role of the Development Bank of Thailand Linking development in economic dimensions with society and the environment This is in accordance with the Sustainable Development Goals (SDGs) in accordance 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.
Mr Rak also said that EXIM Thailand has provided financial support to bio-economy businesses in the past. 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 for BCG businesses to 100 billion baht by 2027 to join the global community to reduce net greenhouse gas emissions to zero
“EXIM BANK will work closely and actively. with government agencies and the private sector involved Promoting and developing a Zero Waste system to bring factory waste back into the production process. Circulate and utilize resources for maximum benefit, creating a Thai supply chain that connects to a clean world supply chain and leads to sustainable development of all sectors,” said the Managing Director of EXIM Thailand.
Mr. Kosin Pungsophon, Expert in the Financial Sector The Asian Development Bank (ADB) Department of Economic Research and Regional Cooperation said that the issuance of Thailand’s EXIM environmental bonds is an important starting point in developing the bank’s potential towards becoming a sustainable bank in Thailand. In line with the government’s aim to promote BCG Model economic policy
In the past the Sustainable Bonds Market in ASEAN Countries has seen tremendous growth. In particular, the green bond market has a higher share than other sustainability bonds. But the value of various sustainability bonds In Thailand, it still accounts for a very small percentage of the outstanding value of all types of debt instruments. with less than 2%
“This announcement of EXIM Thailand’s Green Bond will play an important role in driving the development of Thailand’s capital market in this regard and demonstrates the commitment of EXIM Thailand and the government to promote environmental policy. as well as being a good example for other state enterprises as well as the private sector who are more interested in issuing such debt instruments,” said Mr Kosin.
He said that ADB is ready to work with several publishers in the country. Promoting the development of Thailand’s sustainable bond market to grow There are a variety of bond issuers. giving investors more options to invest and participate in solving environmental and social problems in Thailand. It is expected that this support from EXIM BANK will be a good example for publishers not only in Thailand. But it will set a good example for issuers in other countries as well, as well as helping to promote Thailand as a center for the development of environmental bonds in the region.
By InfoQuest News Agency (21 Sep 65)
Tags: EXIM BANK , Green Bond , Export-Import Bank of Thailand , Bond , Rak Worakitpokathorn