EXIM Bank of Thailand (EXIM Bank) has achieved a significant milestone with the successful issuance of its inaugural Small and Medium Enterprises (SME) Green Bond on June 6, according to an announcement made by Dr. Rak Vorrakitpokatorn, the President of EXIM Bank. This exclusive bond offering was made available solely to institutional and large investors, reflecting the bank’s commitment to promoting sustainable finance.
The unsecured and unsubordinated bonds come with a three-year maturity period, set to expire in 2026. Offering a fixed annual interest rate of 2.71%, the interest will be payable semi-annually throughout the duration of the bond. The total value of the bonds issued reached an impressive 3.5 billion baht.
Fitch Ratings Thailand Ltd has bestowed the highest rating of AAA on the SME Green Bond offering, highlighting the strong and stable financial position of EXIM Bank. This achievement follows the successful issuance of Green Bonds in both 2022 and 2023, both of which received an overwhelmingly positive response from top investors in Thailand.
The oversubscription rate for this latest bond offering reached 2.5 times the initial offering amount. This exceptional response allowed EXIM Bank to surpass its initial fundraising target and secure a favorable interest rate, even amidst a volatile financial market and a backdrop of rising interest rates.
Dr. Rak emphasized that EXIM Bank had already committed approximately 30% of its total credit portfolio, equivalent to about 50 billion baht, to businesses associated with the Bio-Circular-Green (BCG) Economy. The bank has set an ambitious target to expand its BCG loan portfolio to 100 billion baht by 2027.
This dedicated effort by EXIM Bank aligns with its support for clean energy adoption in industrial development, international trade, and investment. Furthermore, it addresses pressing environmental challenges, such as global warming and the escalating severity of climate change.
The recent bond issuance serves as a testament to EXIM Bank’s unwavering commitment to responsible financial management, spanning from sourcing to end-use. By fostering collaboration between the public and private sectors, the bank aims to conduct business in a manner that promotes social and environmental responsibility, in line with the United Nations Sustainable Development Goals.
Moreover, this milestone underscores EXIM Bank’s commitment to fostering communal, social, and international cooperation, as it strives to contribute to a cleaner and more balanced world.