Dr Rak Vorrakitpokatorn, President of the Export-Import Bank of Thailand (EXIM Bank), recently announced that EXIM Bank successfully issued its first-ever Small and Medium Enterprises (SME) Green Bond on June 6. The bond offering was exclusively made available to institutional and large investors.
These unsecured and unsubordinated bonds have a maturity period of three years, expiring in 2026, and a fixed annual interest rate of 2.71%, with interest payable semi-annually throughout the bond’s duration. The total value of the bonds issued amounted to 3.5 billion baht.
The SME Green Bond offering has been rated AAA by Fitch Ratings Thailand Ltd, reflecting EXIM Bank’s strong and stable financial status. The issuance follows successful Green Bond offerings in 2022 and 2023, both of which received enthusiastic responses from top investors in Thailand.
The oversubscription rate was 2.5 times the offering amount, enabling EXIM Bank to raise funds exceeding their initial target and secure a favorable interest rate amid a volatile financial market and rising interest rate environment.
Dr Rak noted that EXIM Bank had previously committed about 30% of its total credit portfolio, or approximately 50 billion baht, to businesses associated with the Bio-Circular-Green (BCG) Economy. The bank has set a target to expand its BCG loan portfolio to 100 billion baht by 2027.
This effort supports the use of clean energy for industrial development, international trade and investment, as well as environmental challenges – particularly global warming and the escalating severity of climate change.
The latest bond issuance underlines EXIM Bank’s dedication to responsible financial management, from sourcing to end-use, expanding collaboration between public and private sectors to conduct business responsibly towards society and the environment in line with the United Nations Sustainable Development Goals.
It also highlights its commitment to fostering communal, social and international cooperation, with the aim of ensuring a clean and balanced world. (NNT)