EXIM Bank’s SME Green Bonds subscriptions exceed target
The Export-Import Bank of Thailand’s offering of environmentally sustainable bonds for SMEs (SME Green Bonds) with a maturity of 3 years and a total value of 3.5 billion baht has exceeded expectations with subscriptions 2.5 times higher than the offered amount.
According to Rak Vorrakitpokatorn, EXIM Bank’s president, the bank issued SME Green Bonds for the first time on June 6 this year. The bonds were offered to institutional investors and major investors in the form of non-convertible, unsecured bonds with a maturity of 3 years and a fixed interest rate of 2.71% per annum, payable every 6 months throughout the bond's tenure. The total value of the SME Green Bonds offered in this round received a credit rating of AAA from Fitch Ratings (Thailand) Ltd.
This reflects EXIM Bank's strong and stable financial status, demonstrated by the successful offering of Green Bonds in 2022 and 2023, which received positive responses from leading investors in Thailand, resulting in a subscription that exceeded the offered amount by 2.5 times. This enabled EXIM Bank to raise funds beyond the set target and obtain favourable interest rates during a period of financial market volatility, Rak said.
According to Rak, EXIM Bank has been providing financial support to businesses related to the development of the bio-circular-green economy (BCG Economy). the circular economy, and the green economy. Approximately 30% of the bank's total loan portfolio, or around 50 billion baht, has been allocated to support these sectors. The bank aims to expand its BCG loans to 100 billion baht by 2027 to support the use of clean energy in industrial development, consumption, trade, and foreign investment.
Reducing environmental problems, particularly global warming and intensifying climate change, is a top priority. This bond issuance underlines the bank’s commitment to responsible financial management, from the beginning to the end, expanding cooperation between public and private sectors to conduct business with social and environmental responsibility, as well as contributing to the sustainable development goals of the United Nations, leading to community-level, societal, and international collaborations in creating a clean and balanced world in all dimensions, Rak said.
In addition, EXIM Bank has received the Best Green Bond award in the Financial Institution category from The Asset Triple A Awards 2022, organized by The Asset, a leading Asian financial magazine. It also received the State-Owned Enterprise ESG Bond of the Year award from the Thai Bond Market Association (ThaiBMA) for issuing two Green Bonds with a total value of 5 billion baht in 2022, Rak added.
With the goal of becoming a sustainable development bank, Exim Bank is committed to conducting business that generates sustainable returns for all stakeholders, outstanding results for customers and businesses, and benefits for society and the environment, aiming for a better future for future generations. The bank develops business models and financial products that are long-term investments for the sustainability of the business sector, enhances social development, and addresses environmental issues using knowledge, expertise, strengths, and partner networks in financial management and business operations.