Thai Union introduces Thailand’s first sustainability-linked bond
Thai Union announced the launch of a senior, unsecured Sustainability-Linked Bond (SLB), which is already receiving high demand from institutional investors, on 21 July.
The duration for the THB 5 billion (USD 152 million, EUR 129 million) SLB is seven years, with an interest rate of 2.47 percent. The SLB was rated as “A+” with a “Stable” outlook by TRIS Rating Co., Ltd. on 16 July.
The bond, issued on 20 July, is the first SLB introduced in Thailand following the launch of Thai Union’s inaugural Sustainability-Linked Syndicated Loan (SLL) in both Thailand and Japan in February of this year. The latest move has strengthened Thai Union’s commitment toward its environmental, social, and governance (ESG) principles and blue financing, the company said.
The demand for the offering was so high, at THB 8.9 billion (USD 270.6 million, EUR 229.7 million), that Thai Union has chosen to increase the size of it to THB 5 billion (USD 152 million, EUR 129 million), from THB 4 billion (USD 121.6 million, EUR 103.2 million) originally.
The Bank of Ayudhya Public Company Limited (Krungsri) served as the sole arranger for the offering. Krungsri was also a Joint Sustainability-Linked Structuring Advisor for the offering, along with MUFG Securities Asia Limited, the securities unit of Japan’s Mitsubishi UFJ Financial Group.
According to Thai Union President and CEO Thiraphong Chansiri, the institutional investors taking part in the offering included government-related funds, life insurance companies, asset management companies, and banks. Two of them were Thailand’s Government Pension Fund and Muang Thai Life Assurance Public Company Limited.
“Sustainability is central to our operations and business philosophy and we have committed to a policy of Healthy Living, Healthy Oceans,” Chansiri said. “This type of Blue Financing represents another way we can now work with our partners in the financial community on products that help ensure we continue to preserve the oceans that are vital not only to our business, but also the planet while providing healthy and nutritious products that health-conscious consumers globally are demanding.”
Photo courtesy of Thai Union