The Export-Import Bank of Thailand (Exim Bank) has reported significant success with its first Blue Bond worth 3 billion baht, which saw subscription demand exceeding the amount issued by 2.5 times, reflecting strong demand from institutional and major investors.
According to Rak Vorrakitpokatorn, president of Exim Bank, as a state-owned specialised financial institution under the Finance Ministry's supervision, Exim Bank has consistently issued bonds for environmental sustainability, totalling 11.5 billion baht since 2022, with the latest 3-billion-baht Blue Bond receiving strong interest from institutional and large investors.
The funds raised would be used to support business sectors and entrepreneurs focused on marine and coastal environmental concerns such as hotels and marine tourism, fishing and marine aquaculture, waste management and treatment, marine waste recycling, and merchant marine operations, he said.
In addition, Mr Rak said Exim Bank has developed new financial tools such as green and blue economy financing under the Sustainability Linked Loan scheme.
This scheme offers revolving and long-term credit facilities to entrepreneurs of all sizes, with interest rates as low as 3.85% per annum and a maximum credit line of 200 million baht per entrepreneur.
The bank aims to increase the proportion of green loans in its portfolio from around 37% of total loans currently to 50% by 2027.
"This Blue Bond represents more than just a financial instrument; it embodies the collaboration and unwavering commitment of Exim Bank, the Finance Ministry, and relevant public and private sector partners to preserve our natural resources, from the land to the seas and oceans.
"Together, we aim to address the current global environmental challenges and build an ecosystem conducive to business operations within environmental, social and governance frameworks, ensuring a healthier planet for all," Mr Rak added.
Deputy Finance Minister Paopoom Rojanasakul said Exim Bank's Blue Bond is the first of its kind issued by a Thai financial institution, with Bank of Ayudhya and the Government Savings Bank as lead underwriters.
It has a 3-year tenure, is worth 3 billion baht in total and has a fixed coupon rate of 2.78% per year.
It is issued under the sustainable finance framework developed with the guidance of the Asian Development Bank and certified by DNV (Thailand) Co, a leading global standard certification organisation. Fitch Ratings assigned the bond an AAA rating, reflecting Exim Thailand's strong financial standing.
Mr Paopoom said existing environmental pressure and climate change factors have intensified and prompted countries around the world, including Thailand, to realise the urgent need to address these challenges concretely.
The goal is to achieve carbon neutrality by 2050 and net zero emissions by 2065.
According to Mr Paopoom, collaborative efforts are crucial for developing comprehensive solutions to preserve the natural environment, including seas and oceans, which are vital for marine life diversity and oxygen production.