BTS Group collaborates with top domestic banks to introduce a new dimension of investment: "Sustainability-Linked Bonds"

The goal of this seminar is to provide information to investors and gain an overview of the ESG Bond and Sustainability-Linked Bonds (SLB), as well as create awareness for investors on the topics of: How will  these bonds positively impact the environment, society and create sustainability?

Ms. Ariya Tiranaprakit, deputy managing director of the Thai Bond Market Association (TBMA), said that the overall ESG Bond market, including Green bond, Social bond, Sustainability bond and Sustainability-Linked Bond, in the first 10 months of 2022, had a total issuance value of 158.140 billion THB. This consists of 105 billion THB or 66% of issuance by the government sector and 53.140 billion THB or 34% by the private sector, resulting in ESG Bonds having an outstanding value of 449.636 billion THB, an increase of 50% from the end of 2021 at 299.296 billion THB.

The trend of the ESG bonds is growing steadily through the implementation of government policies and the fundraising strategies of various companies. In the first half of 2022, the group with the highest share of ESG bond holdings is  insurance companies at 25.56%, the second highest is banks at 20.16%, followed by 18.84% for GPF funds, and 17.89% for foreign investors.

This seminar is one of the ways to create awareness in ESG bonds. Moreover, it helps investors for easier access to ESG information which can lead to efficient fund raising by the issuer.

Mr. Surayut Thavikulwat, Chief Financial Officer of BTS Group Holdings Public Company Limited, said that the Sustainability-Linked Bonds that the Company will offer this time is a new dimension for investment in that everyone who invests will be involved in creating sustainability together with the Company, with a satisfactory return on investment and acceptable risk level. He is confident that it will be well received by investors.

The Sustainability-Linked Bonds offered during November 2022 have 4 tranches, with semiannually interest payment. The subscription period is on 25 and 28-29 November 2022 through 5 leading financial institutions, Bangkok Bank, Krung Thai Bank, Kasikorn Bank, Siam Commercial Bank, and CIMB Thai Bank. The bonds have been rated “A” according to the TRIS Rating. A minimum subscription has been set at a value of 100,000 THB and will be sold in increments of 100,000 THB.

“This issuance of this SLB is in line with BTS Group's long-term climate strategy by maintaining carbon neutrality and increasing the proportion of electricity consumption from renewable energy sources in at least 10% of operations.” said Mr. Surayut.