Thailand’s PDMO will issue a 130 billion baht sustainability-linked bond for fiscal 2025, funding projects to reduce emissions and promote electric vehicles, aligning with international sustainability standards.
Thailand’s 130 Billion Baht Sustainability-Linked Bond
Director-general Patchara Anuntasilpa of Thailand’s Public Debt Management Office (PDMO) has announced plans for a 130 billion baht sustainability-linked bond (SLB) for fiscal year 2025. Aimed primarily at institutional investors, this bond will connect interest rate adjustments to national environmental targets, such as a reduction in CO₂ emissions and increased adoption of electric vehicles by 2030. The initiative aligns with international standards, emphasizing Thailand’s commitment to the Paris Agreement.
The first issuance of this SLB, with an initial value between 20 to 30 billion baht, will take place this month, featuring the SLB406A series. Set to mature in 15 years, it is designed to attract institutional investors, such as insurance companies and cooperatives, that are increasingly focused on sustainable investments. Proceeds from the bond will fund projects aimed at reducing greenhouse gas emissions.
Key goals for this initiative include cutting greenhouse gas emissions by 388,000 tons of CO₂ equivalent and increasing battery electric vehicles to at least 440,000 annually by 2030. Accountability is built-in; failing to meet either target will cause a 2.5 basis point rise in interest rates, reinforcing the bond’s commitment to sustainability. With existing sustainability bonds totaling 480 billion baht, this latest offering underscores the Thai government’s resolve to support long-term positive impacts on both the economy and environment.
Source : Thailand issues 130 billion baht sustainability-linked bond
