Thailand plans second sustainability bond worth B15bn
The Public Debt Management Office (PDMO) is preparing to issue Thailand’s second sustainability-linked bond (SLB), aiming to raise 15 billion baht through a 15-year issuance tied to the country’s climate and biodiversity goals.
Thailand is preparing to issue its second sustainability-linked bond, worth 15 billion baht, with returns contingent on meeting specific climate and biodiversity targets. The 15-year bond, designated SLB425A, will be managed by the Public Debt Management Office (PDMO) and linked to two key performance indicators. The first focuses on reducing net greenhouse gas emissions to 152 million tonnes of carbon dioxide equivalent by 2035, a 47% decrease from 2019 levels.
The second indicator aims to increase protected terrestrial and inland water areas, as well as biodiversity conservation areas, to at least 30% of Thailand's total area by 2030. Unlike conventional sustainability bonds, this issuance ties the fundraising directly to national policy targets and outcomes, to be used for financing the government's budget deficit.
The final interest rate will depend on investor demand and market conditions, with the PDMO expecting to confirm the rate and final issue size by September 10. Thailand previously became the first Asian government to issue a sovereign sustainability-linked bond in November 2024, receiving strong investor demand and subsequently increasing the initial offering from 20 billion to 30 billion baht.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
