Thailand Issues 15 Billion Baht Sustainability Bond in September
Thailand's Public Debt Management Office will issue a 15 billion baht sustainability bond in mid-September tied to environmental targets including reducing net greenhouse gas emissions by 47 percent by 2035 and protecting 30 percent of land
Jindarat Viriyataveekul, director of the Public Debt Management Office, announced that the agency is preparing to issue its second Sustainability-Linked Bond (SLB425A) with a maturity of approximately 15 years and an initial allocation of around 15 billion baht. The bond is scheduled for issuance in mid-September, with the allocation deemed sufficient based on market conditions and investor demand.
The second SLB will be used to offset the 2025 budget deficit and will incorporate key performance indicators (KPIs) aligned with the country's policy objectives, distinguishing it from standard sustainability bonds that must directly support specific projects. Two sustainability metrics have been established, including a new indicator for biodiversity and forest conservation. If targets are met, investors receive the agreed interest rate; if targets are missed, the interest rate increases.
The first KPI aims to reduce the country's net greenhouse gas emissions, covering emissions from all sectors including land use, land-use change, and forestry. The target is to reduce net emissions to 152 million tons of carbon dioxide equivalent by 2035, representing a 47 percent reduction compared to 2019 levels. The second KPI seeks to increase protected land and water areas, including conservation zones outside designated protection areas, to at least 30 percent of the nation's total land area by 2030.
The Public Debt Management Office plans to conduct investor roadshows to present information about the SLB425A, its financing framework, and financial structure. Domestic investor events are scheduled for August 31, while international investor roadshows will be held in Hong Kong and Singapore between September 1-4. Investor demand surveys will be conducted on September 10 to determine appropriate interest rates and bond issuance amounts, taking into account market conditions, investment costs, and investor preferences.
The agency plans to continue issuing SLB instruments regularly, with this being the final issuance for fiscal year 2025. In fiscal year 2026, new bond types such as transition bonds are planned. For the 2026 budget, the Public Debt Management Office is preparing a public debt management plan to be submitted to the cabinet, which includes plans for new borrowing, debt restructuring, and issuance of new instruments such as long-term bonds, savings bonds, SLBs, and green bonds.
