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KBank first to launch bonds to finance green, social projects

Oct 09. 2018
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KASIKORNBANK is the first bank in Thai and the Asean bloc to launch sustainability bonds to finance green and social projects The bonds issued under the programme are aimed at supporting the development of Thai and regional capital markets.

They should also promote investments that generate returns in parallel with driving sustainable growth in Thailand and global communities.

KBank issued sustainability bonds totaling US$100 million (Bt3.3 billion) for foreign investors, making it the first bank in Thailand and Southeast Asia to offer such bonds.

The proceeds will be used to finance projects to bring about environmental and social benefits in accordance with international standards set up by the International Capital Market Association (ICMA) and the Asean Capital Markets Forum (ACMF).

The sustainability bonds of KBank are senior, unsecured bonds with a floating interest rate based on LIBOR plus 0.95 per cent.

Under a five-year term, the maturity will be in 2023. The entire amount was offered to foreign institutional investors via KBank’s Hong Kong Branch.

Related parties include BNP Paribas, which acts as the sustainability bond framework structuring advisor and sole lead manager. Also, Sustianalytics – an independent global provider of ESG and corporate governance research – will provide a second party opinion on the sustainability bond framework.

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