Bangkok, Thailand, May 11, 2022—A new IFC investment will help increase access to financing for climate-smart solutions and blue economy projects in Thailand. IFC has committed to invest in a blue bond issued by TMBThanachart Bank Public Company Limited (ttb), the first commercial bank to issue a blue bond in Thailand. This investment will help increase access to financing for climate-smart solutions and blue economy projects in Thailand.
IFC will subscribe up to $50 million for the blue bond that will help ttb grow its financing towards eligible blue assets. IFC will help ttb with the structuring of the bond and assist in developing a blue finance strategy and framework. IFC is also supporting ttb's broader sustainability agenda, including a green bond subscription of up to $100 million dedicated to financing customers' purchases of electric vehicles (EV).
There has been a rapid increase in CO2 emissions in Thailand, especially within the transport sector. Fossil-fuel driven vehicles are one of the primary contributors, accounting for 17 percent of the total emissions. In response, establishing a vibrant electric vehicles industry in Thailand will be key to achieving the country's climate goals—a 40 percent reduction in GHG emissions by 2030, among others.
Another significant climate challenge for Thailand is the threat to its blue economy, which contributes to approximately 30 percent of gross domestic product (GDP). Thailand is estimated to be in the top six countries globally in terms of contributing to marine plastic pollution. Promoting sustainable development of blue economy is a priority for Thailand, a country with high level of marine plastic pollution.
"ttb's strategy and business operations always aims toward a sustainable banking framework and one of our strategic focus is climate finance. IFC's support will help ttb scale our green finance portfolio for EVs and build capacity in identifying eligible blue assets. This will enable us to focus on critical areas such as marine plastic recycling, water conservation, and wastewater treatment projects, which are key to the country's economy," said Mr. Piti Tantakasem, Chief Executive Officer of ttb.
IFC's Managing Director Makhtar Diop said, "IFC has been at the forefront of creating green and blue financing markets in Asia, including Thailand. With this investment, IFC expects to establish new asset classes in Thailand's debt market and leverage more investments in the blue and green economy to support Thailand's sustainable development and address the country's key climate challenges."
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About TMBThanachart (ttb)
TMBThanachart Bank Public Company Limited (ttb) is the merger of TMB Bank PCL. and Thanachart Bank PCL., located in Thailand. It has integrated the strengths and potential of both banks, and follows its company philosophy "Make REAL Change" to create a new way of banking. The Bank not only offers superior financial products and services to customers, but also commits to providing financial literacy and financial solutions that are personalized and fitted to the needs of each customer segment throughout their life stages. The Bank's mission is to improve Thai's life-long financial well-being today and in the future.
More information, please visit www.ttbbank.com.
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