Thai Union has secured its first sustainability-linked syndicated loan (SLL) worth USD 400 million (EUR 330 million) from a group of financial institutions, the Thai seafood company said in a statement on 16 February.
The THB-12 billion (USD 400 million, EUR 330 million) loan, with a five-year term, comprises a credit facility of THB 6.5 billion (USD 217 million, EUR 179 million), denominated in both Thai baht and U.S. dollars, along with a USD 183 million (EUR 151 million) credit facility denominated in U.S. dollars and Japanese yen.
Mizuho Bank, MUFG Bank, and Bank of Ayudhya served as mandated lead arrangers and bookrunners (MLABs) and sustainability coordinators for the syndicated loan. Thailand’s Kasikornbank PCL, Hongkong and Shanghai Banking Corporation Limited, and BNP Paribas participated as lead arrangers while the Bangkok branch of Oversea-Chinese Banking Corporation Limited and Sumitomo Mitsui Trust Bank are arrangers for the loan, according to Thai Union.
The offer of the credit facility has received significant interest among Japan’s investor network. Another group of 19 financial institutions in Japan has confirmed they are willing to participate in the facility along with the MLABs.
Thai Union said interest rates for the SLLs will depend on how a borrower implements key performance indicators (KPIs) around sustainability, which will be verified by external organizations. For Thai Union, it will have a chance to receive lower interest rates for the loan if it is successful in scoring high in the S&P Global Dow Jones Sustainability Indices; fulfilling its targets of greenhouse gas reduction; and strengthening supervision in its international supply chains.
“Thai Union has placed sustainability at the heart of our business and, with our global sustainability strategy, SeaChange, now entering its next phase, we are very pleased to have launched this loan,” Thai Union President and CEO Thiraphong Chansiri said. “This, our first sustainability-linked loan, reaffirms our commitment to driving meaningful change, not only in our own operations, but in the industry as a whole.”
Mizuho Bank Bangkok Branch Executive Officer and General Manager Yasuhiro Kubota said the loan will help Thai Union further amplify the traceability of raw materials in its supply chain and support the company’s combat against illegal, unreported, and unregulated (IUU) fishing.
Photo courtesy of Thai Union
