Thai Union has inked another short-term blue finance loan agreement to allow it to further implement its sustainability commitments.
The loan was issued by TMB Thanachart Bank Public Company Limited and is worth THB 2 billion (USD 60.6 million, EUR 55.9 million), Thai Union said in a release earlier this month.
Thai Union’s adoption of “blue finance” initiatives, which are linked to the implementation of major performance indicators and sustainability performance targets, will help the company achieve its sustainability goals, according to Thai Union Chief Financial Officer Ludovic Garnier.
In February 2021, Thai Union announced it secured its first sustainability-linked syndicated loan (SLL) worth THB 12 billion (USD 363.8 million, EUR 335.8 million). 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 were arrangers for the loan.
“Last year, Thai Union began paving the way for blue finance in Thailand through a series of long-term sustainability-linked loans and bonds totaling THB 27 billion [USD 818.7 million, EUR 755.2 million], and we are targeting 75 percent of our long-term funding to be Blue Finance by 2025,” Thai Union Chief Financial Officer Ludovic Garnier said. “This ongoing shift towards blue finance demonstrates Thai Union’s firm commitment to both innovation and sustainability, which are at the heart of our operations.”
In July 2021, Thai Union also launched a senior, unsecured Sustainability-Linked Bond (SLB), which the company said was well-received by institutional investors. The duration for the THB 5 billion (USD 151.6 million, EUR 140 million) SLB is seven years, with an interest rate of 2.47 percent.
Thai Union concluded the fourth quarter of 2021 with record results in sales and net profit. Its sales value in 2021 also hit all-time high as the company’s growth continued to thrive thanks to the strong performance of most of its key business segments.
Photo courtesy of Thai Union
