More than 10 companies are poised to launch green bonds next year, suggesting that environmental, social and governance (ESG) bonds are gaining ground in Thailand.
The tentative green bond issuers are both listed and non-listed companies, said Sirivipa Supantanet, deputy secretary-general of the Securities and Exchange Commission (SEC).
TMB Bank emerged as Thailand's first green bond issuer in June 2018, and five more issuers -- Kasikornbank, B.Grimm Power Plc, BTS Group Holdings Plc, Energy Absolute Plc and Bank of Ayudhya -- later offered green bonds. The six issuers mobilised a combined 40.2 billion baht, according to the SEC data.
A green bond is a fundraising instrument for eco-friendly or ESG projects or businesses.
In related news, Ms Sirivipa said the SEC is studying creation of a green bond verifier by the first half of next year to align with international standards.
The verifier will be a third party and is tasked with certifying green paper to be issued in the Thai market, she said. The SEC and the Stock Exchange of Thailand are studying the establishment of the verifier and have asked the World Bank to consult on the issue.
SEC secretary-general Ruenvadee Suwanmongkol said the regulator has a policy to support companies focusing on sustainable growth and is poised to waive filing and registration fees for green bond issuance and ESG projects.
Ms Ruenvadee said the SEC joined forces with listed firms on Vibhavadi Road to launch the Vibhavadi Zero Waste campaign.
There are 38 companies located on Vibhavadi Road, and 23 are taking part in the campaign, including Intouch Corporation Plc, East Water Resources Development and Development Plc and Singha Estate Plc.