Thai Union Group has successfully priced a THB 5 billion (€130 million) seven-year senior, unsecured sustainability-linked bond (SLB) for institutional investors.
The SLB carries an interest rate of 2.47% per annum and was issued on 20 July 2021. It is the first to be launched in Thailand and follows Thai Union’s inaugural sustainability-linked loan in February, further demonstrating the company’s commitment to environmental, social and governance principles.
“Sustainability is central to our operations and business philosophy and we have committed to a policy of ‘healthy living, healthy oceans,” explained Thiraphong Chansiri, president & chief executive of Thai Union.
“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,” he added.
Bank of Ayudhya Public Company (Krungsri) is the sole arranger for this offering, rated as ‘A+’ with a ‘Stable’ outlook by TRIS Rating Co, while both Krungsri and MUFG Securities Asia, the securities entity of Mitsubishi UFJ Financial Group, are the joint sustainability-linked structuring advisors.
The offering has garnered demand of approximately THB 8.9 billion, leading Thai Union to increase its issue size from THB 4 billion to THB 5 billion in response. The bond is the first globally to introduce step-up and/or step-down facilities related to the achievement of sustainability performance targets.