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TMB Issues Thailand’s First Green Bond for $60 Million

Singapore, June 7, 2018 —IFC, a member of the World Bank Group, is the sole investor of the $60 million green bond issued by TMB Bank, one of Thailand’s leading banks. The aim is to expand financing for private sector investments that help address climate change. This marks the first green bond issued by a commercial bank in Thailand.
The pioneering green bond will provide an alternative source of long-term green finance in the country. Further, it will help Thailand achieve its target of reducing greenhouse gas emissions by an unconditional 20 per cent by 2030 relative to its Business As Usual (BAU) scenario .
The funds will be used exclusively to finance climate-smart projects, particularly renewable energy. It is projected to support TMB’s expansion in the green finance space, helping address the country’s climate financing gap of over $31 billion per annum until 2030.
“Thailand is vulnerable to climate change,” said Piti Tantakasem, CEO of TMB.  “This green bond, the very first issued by a financial institution in Thailand, reiterates our commitment to further stimulate private investments in renewable energy and energy efficiency, which will ultimately benefit both the environment and the economy. Environmental sustainability is one of the pillars of TMB’s Sustainable Banking framework, and the bank has already financed many projects related to renewables, energy efficiency, and waste reduction.” He added, “TMB aims to expand its green lending portfolio from $280 million to $470 million in the next 5 years with guidance and support from IFC. We are delighted to partner with IFC, a global leader in green financing, and help put Thailand on the map for green bond investments.”
“This pioneering green bond transaction by TMB and IFC’s second green bond investment in the East Asia and Pacific region will play a catalyzing role in developing the nascent green bond market in Thailand,” said Vivek Pathak, IFC Director for East Asia and the Pacific. “We hope that other market participants replicate the opportunity of using this new asset class to raise funding for climate-smart projects.”  
TMB will also issue a second bond, raising $90 million from IFC, to support its SME lending program and increase access to finance for Thailand’s SMEs, a key contributor to Thailand’s economy.
Vittorio di Bello, IFC’s Regional Industry Head for Asia, Financial Institutions Group, said, “This green bond will support the Thai government’s goal to enhance the country’s financial infrastructure and accelerate low-carbon growth. The SME bond is likely to improve access to finance, a key constraint for Thailand’s entrepreneurs, and help advance private sector solutions to SME finance.”
The green bond and SME bond will also be the first seven-year bonds to be issued by a private bank in the market. In 2012, IFC and TMB first partnered to jointly deliver financing to SMEs that were impacted by the destructive flood. This was followed by a risk-sharing facility in 2014 in which IFC supported TMB’s expansion in the SME market.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org .
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About TMB
TMB is a leading commercial bank in Thailand with “Make THE Difference” as corporate philosophy that aims at promoting quality of life by maximizing the benefits that the Bank’s products & services as well as community projects can bring. Listed on the Stock Exchange of Thailand, TMB serves retail, small and medium enterprises, corporate and multi-corporate customers in Thailand and internationally. For more details, visit www.tmbbank.com .