Kasikornbank (KBank) has emerged as the first bank in Thailand and Asean to issue sustainability bonds, with the US$100-million proceeds to help finance green and social projects.
The bond issuance is aimed at supporting development of Thai and regional capital markets and promoting investments that generate returns while driving sustainable growth.
Proceeds arising from the bond issuance will be used to finance projects related to the environment and society in accordance with international standards set by the International Capital Market Association and the Asean Capital Markets Forum, said KBank chairman Banthoon Lamsam.
KBank's five-year sustainability bonds are senior, unsecured bonds with a floating interest rate based on Libor plus 0.95 percentage points.
The entire amount was offered to foreign institutional investors via KBank's Hong Kong branch.
Related parties include BNP Paribas, which acts as the framework structuring adviser and sole lead manager, and Sustainalytics, an independent global provider of corporate governance research, which provided a second-party opinion on the sustainability bond framework.
Mr Banthoon said the bonds were fully subscribed within one day, reflecting KBank's ability to create a balance between return on investment and fulfilling the stated policy of the bonds.
KBank was the first bank in Thailand and Asean to be granted membership of the Dow Jones Sustainability Indices, making the DJSI World Index and DJSI Emerging Markets Index for a third consecutive year.
In addition, KBank has been selected for the FTSE4Good Emerging Index for three straight years.
At the national level, the Stock Exchange of Thailand has included KBank in the Thailand Sustainability Investment List and the SET THSI Index.
KBank is the first and only commercial bank in the country to be awarded carbon-neutral certification by the Thailand Greenhouse Gas Management Organization.
KBANK shares closed yesterday on the SET at 210 baht, up one baht, in trade worth 1.04 billion baht.