Krungsri strives toward continued success with ESG financing and comprehensive solutions
Krungsri (Bank of Ayudhya PCL) announced its 2023 business direction for the Corporate and Investment Banking Group, continuing its success in laying the foundation for the Environment, Social, and Governance (ESG) financial framework.
The strategy features Total Financing & Hedging Solutions that meet the needs of corporate customers along with Krungsri’s financial and investment advisory services.
Krungsri is also joining forces with MUFG networks across Asean to widen opportunities for corporate customers and increase their business potential, in line with Krungsri’s Medium-Term Business Plan (MTBP) 2021-2023 to become a trusted partner for business customers.
Prakob Phiencharoen, Krungsri Head of Corporate and Investment Banking Group said that “In 2022, Krungsri achieved its goal in supporting our corporate customers, with 2% Year-Over-Year (YOY) growth in business loans while outstanding loans are valued at 474,500 million Baht. Krungsri emphasises the importance of Environment, Social, and Governance (ESG) development by contributing more than 35,000 million Baht in ESG finance reinforcing Krungsri leading position with extensive ESG finance products and services offerings that support sustainable businesses.”
Facilitating major finance deals to support sustainable growth of Thai businesses
Over the past year, Krungsri has helped corporate customers to achieve sustainable business operations through a number of major deals, such as becoming an underwriter for a Sustainability Bond issued by The Ministry of Finance, Public Debt Management Office. Furthermore, Krungsri also offers sustainability-linked financial products by providing a Sustainability Loan (SL) with a total value of 3,000 million Baht to the Bangkok Expressway and Metro PCL and being an underwriter for its sustainability debentures with total offering value of 4,500 million Baht. In addition, Krungsri offers financial solutions to support Environmental by participating as an underwriter for the Green Bond of the Export-Import Bank of Thailand (EXIM Bank), Global Power Synergy PCL, and Sri Trang Gloves (Thailand) PCL. The bank also supporting Green Loan to Central Pattana PCL.
Reinforcing success with the investment banking expertise
In addition to its expertise and success in ESG finance, Krungsri also provided investment banking advisory services, in collaboration with Krungsri Securities PCL (KSS) in distributing first Initial Public Offerings (IPO) for Thai Life Insurance PCL. This is the highest offering value IPO of shares in the insurance and life insurance sector in the Thai capital market history and had the highest selling price in Southeast Asia since 2000. Krungsri also distributed common stock to existing shareholders of RATCH Group PCL. This is the highest common stock offering price in the Stock Exchange of Thailand in 2022. As a Financial Advisor for Super Energy Corporation PCL, Krungsri provides advice on Mergers and Acquisitions (M&A) and helped the company to form a strategic partner in the solar power business in the Asean region with the Ayala Group. The notable success is a result of strong synergy through the advisory process between Krungsri, MUFG, and Philippines-based Security Bank, one of the companies in MUFG’s Financial Business Group.
A comprehensive businesses strategy to develop a sustainable financial market for Thai business to grow across Asean
In 2023, Krungsri continues to enhance our corporate customers’ potential in line with the Medium-Term Business Plan (MTBP). Our loan growth target is set at 5% and we continue to support ESG Financing to achieve the Bank’s target in supporting social and sustainable finance portfolio of 50,000 – 100,000 million Baht by 2030. Krungsri’s Corporate and Investment Banking Group strives to become a Trusted Partner through three strategies:
• Develop financial products to support sustainable business and cultivate global ESG Financing with MUFG by continue to offer products and services for social and sustainable finance such as Sustainable Loans, Sustainable Bonds, ESG bonds and loans for environmental purposes. In addition, Krungsri has established the Centre of Excellence unit to support customer’s ESG requirements. We also emphasize that the Sustainable Financing Framework meets international standards, and we leverage MUFG knowledge to help support our corporate customers on ESG journey and strengthen Thailand's sustainable finance market.
• Enhance the potential of Total Financing & Hedging Solutions by offering financial innovations that respond to different customers’ demands in a variety of diverse industries for a seamless process. Krungsri also continues to advice, analyse, and support business know-how including business expansion, mergers and acquisitions (M&A), and cross-border investment.
• Leverage the synergy with the MUFG network in over 50 countries to connect service capabilities between partner banks to provide added value to customers and increase business potential while widening opportunities for customers across Asean in line with ‘GO Asean with krungsri’.
“Krungsri leverages MUFG’s strong network and expertise to enhance its service capabilities and build a strong team that understands customers’ needs, offering tailored solutions for each industry. Importantly we remain committed to supporting businesses that operate sustainably and align with the ESG framework for sustainable growth,” Mr. Prakob concluded.
