Krung Thai-PTTEP currency risk management connect sustainability
Date 08 Nov 2021 time 14:13
First time in Thailand Krung Thai-PTTEP currency risk management connect sustainability Building on the success of digital bonds
Mr. Phayong Srivanich, President Krung Thai Bank revealed that Krung Thai and PTT Exploration and Production Public Company Limited (PTTEP) have built on the success of their cooperation in offering digital debentures of PTTEP. that received overwhelming response with people interested in subscribing to 6 billion baht within 8 minutes and 12 seconds, leading to sustainable business by signing a cross currency swap (CCS) derivative contract on PTTEP digital debentures that measure environmental, social and corporate governance performance ( ESG) or ESG-Linked Cross Currency Swap for the first time in Thailand This is an important step in the Thai capital market. supporting the importance of ESG covering financial risk management Currently, the financial sector focuses mainly on financing such as environmentally friendly lending, etc. ESG-Linked Cross Currency Swap will use the ESG targets of both the Bank and PTTEP to link with The interest rate of the CCS contract, which is increased or decreased according to the sustainability index of the company.
This cooperation This underscores the Bank’s core mission to focus on sustainable business practices, taking into account all stakeholder groups. Reinforcing its market leadership in ESG Financial Solution by developing digital infrastructure to enhance the quality of life of all groups of customers. Ready to meet the Sustainable Development Goals (SDGs) in many aspects, including bringing innovation to increase efficiency. Develop and upgrade the Thai capital market Provide products and services that support continued economic growth. especially wallet application which was developed by Infinitas by Krungthai to be “Thailand Open Digital Platform”, making every living activity This includes spending on government projects through G-wallets, health, education, and savings and investments. It’s easy, convenient, secure, making transactions anywhere, anytime.
It also answers the question of reducing environmental problems Green loan offers paperless products and services. For example, PTTEP digital bonds are scripless, reducing travel to branches. Make transactions on the wallet app immediately. Which is a channel that most people are familiar with, with more than 33 million users, and it also answers the problem of reducing inequality problems. Helping people of all groups to access investment thoroughly. Including investment in wallet bonds, SCB, with a minimum investment of only 100 baht, and investment in digital bonds, PTTEP with a minimum investment of only 1,000 baht, with a system that is transparent, safe, can be audited at every step. The bank is ready to join hands with all groups of alliances. Develop new financial and investment innovations for customers of all segments and levels to manage their financial risks and increase their investment options under volatile global market conditions.”
Mr. Samrit Samnieng, Executive Vice President PTTEP Finance and Accounting Group revealed that this cross-currency swap transaction of PTTEP digital bonds aims to hedge financial risks in accordance with the Company’s functional currency. and in accordance with the fundraising objectives The signing of the ESG-Linked Cross Currency Swap reinforces our commitment. and confident that PTTEP will operate its business in order to achieve “Sustainability Organization” that takes into account the mutual benefits of all stakeholders as well as enhancing energy security for the country
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