Bangkok Transport Authority's Green Bond Oversubscribed 1.65 Times
Bangkok's transit authority successfully raised 4.5 billion baht through its first green bond, oversubscribed 1.65 times by investors, with proceeds funding 1,520 electric buses to reduce emissions and air pollution.
The Bangkok Mass Transit Authority (BMTA) announced on July 24, 2025 that its first sustainability bond issuance has been a major success. BMTA Director Kittikaan Jomdung Charuworppalkul revealed that institutional investors, fund managers, banks, insurance companies, and foundations have overwhelmingly subscribed to the 4.5 billion baht bond offering—with total applications reaching 1.65 times the available amount. The bonds carry a 6-year maturity and 1.74% annual coupon rate, with principal and interest guaranteed by the Ministry of Finance. Kasikornbank and Bangkok Bank have been appointed as lead managers.
The bond issuance marks a historic milestone for the BMTA in its journey toward sustainability. The primary objective is to refinance the BMTA's debt structure for fiscal year 2025 while supporting the procurement of 1,520 electric buses to replace aging vehicles. The bus acquisition has been established as a key performance indicator (KPI) for the bond, reflecting the BMTA's commitment to reducing greenhouse gas emissions and addressing air pollution, particularly PM 2.5 levels.
The success of this funding mechanism is expected to encourage other state enterprises to adopt similar financial tools for sustainable development. By participating in the bond offering, institutional and major investors have become partners in delivering cleaner air to future generations and advancing Thailand's public transportation system toward a sustainable future.
