Thai Union launches new USD 183 million sustainability-linked bond

Published on
November 16, 2021
The Bank of Ayudhya Public Company Limited and Thai Union are working together to launch a second dual-tranche senior unsecured sustainability-linked bond.

Thai Union has successfully launched its second dual-tranche senior unsecured sustainability-linked bonds (SLB) for institutional investors, following the company's first SLB issuance in July 2021.

In an 11 November statement, Thai Union said the new bonds are worth THB 6 billion (USD 182.8 million, EUR 158.3 million), including a five-year tranche of THB 4.5 billion (USD 137 million, EUR 118.8 million) priced at 2.27 percent and a 10-year tranche of THB 1.5 billion (USD 45.7 million, EUR 39.6 million) repaying at a rate of 3.36 percent.

The SLB was rated as “A+” with a “positive” outlook by TRIS Rating Co. on 4 November.

The Bank of Ayudhya Public Company Limited (Krungsri) served as the sole bookrunner and sole arranger for the offering. Krungsri was also the sole arranger for the offering in July.

The latest SLB offering is the continuation of the company's efforts to enhance its sustainability commitment benefiting the oceans and the seafood industry, it said. Thai Union launched its inaugural sustainability-linked syndicated loan (SLL) in both Thailand and Japan in February 2021. It was recently recognized as the top on the Seafood Stewardship Index (SSI) for the second time in a row for its contributions to the United Nations Sustainable Development Goals (UN SDGs).

Similar to the first SLB, the latest offering has also drawn heated interest from investors.

“The offering garnered strong demand of more than THB 10 billion (USD 304.7 million, EUR 263.9 million), or over two times the offered amount, reflecting investors’ confidence in Thai Union's strong business profile, financial performance, and continued sustainability commitment,” Thai Union President and CEO Thiraphong Chansiri said. “We are also glad to see new investors, especially leading asset-management companies in Thailand, participating in this transaction, in addition to government related funds and life insurance companies.”

In July’s offering, Thai Union also said demand for its SLB was so high – at THB 8.9 billion (USD 270.6 million, EUR 229.7 million) – that the company decided to increase its size to THB 5 billion (USD 152 million, EUR 129 million) from the original offering of THB 4 billion (USD 121.6 million, EUR 103.2 million).  

Photo courtesy of Thai Union

Reporting from Hanoi, Vietnam

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