True Corporation Public Company Limited (TRUE), Thailand’s telecom-tech titan and a beacon for global sustainability, has made significant strides by clinching its maiden sustainability-linked syndicated loan, amassing a whopping JPY141.3 billion. This financial maneuver is a historic first for a Thai telecom-tech enterprise venturing into the sustainability-linked debt arena.
This groundbreaking loan not only marks True Corporation’s inaugural foray into the Japanese yen financing market, but it also stands as the most substantial Japanese yen loan and sustainability-linked loan ever secured by a Thai corporation. Initially set at JPY109.9 billion, the loan saw a surge in interest from both Japanese and international financial institutions, leading to an upsized total of JPY141.3 billion, thanks to the activation of the Greenshoe option.
The loan’s linkage to crucial performance indicators underscores True Corporation’s unwavering dedication to sustainability. These KPIs include: (i) the reduction of Greenhouse Gas (GHG) emissions (Scope 1 and 2), and (ii) the expansion of solar cell capacity at its cell sites. This progress aligns seamlessly with True’s ambitious targets of achieving carbon neutrality (Scope 1 and 2) by 2030 and net-zero emissions by 2050, as endorsed by the Science-Based Targets Initiative (SBTi).
True Corporation’s adoption of sustainability-linked financing underscores its robust commitment to Environmental, Social, and Governance (ESG) goals. Notably, in 2023, the company earned the highest score in the telecommunications sector in the S&P Global Corporate Sustainability Assessment and has maintained its presence in the Dow Jones Sustainability Indices (DJSI) for six consecutive years. This new loan further cements True Corporation’s commitment to renewable energy and technological innovation, including the use of artificial intelligence to curb energy usage.
Ms. Yupa Leewongcharoen, Co-Chief Financial Officer of True Corporation, shared her excitement, stating, “We are ecstatic to have secured our first Japanese yen sustainability-linked loan, met with overwhelming enthusiasm. This milestone diversifies our investor base, mitigates financial risk, and enhances our financial flexibility with advantageous terms. Moreover, it aligns with our climate action objectives and bolsters our standing as the globe’s most sustainable telecom company.”
True Corporation envisions itself as a sustainable leader in the telecom-tech arena, concentrating on profitable growth through enhanced customer experience, operational synergies, and stringent cost control. The company projects 2025 as a milestone year for sustainable profitability and value creation, driven by technological advancements, exceptional network quality, and heightened customer satisfaction.
This landmark loan arrangement was orchestrated by a consortium of influential banks, including Bank of China (Hong Kong) Limited, BNP Paribas, DBS Bank Ltd, Mizuho Bank, Ltd., Natixis, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank (Singapore) Limited, and Sumitomo Mitsui Banking Corporation. Notably, Mizuho Bank, Ltd. took the lead as the sole JCR rating coordinator, while Sumitomo Mitsui Banking Corporation spearheaded the role of the sole sustainability coordinator.
This is a huge win for True Corporation, but I can’t help but wonder how much of this is just a PR stunt. Are they truly committed to sustainable practices or is this just greenwashing?
I agree, Kathy. A lot of companies say they’re sustainable but don’t actually follow through.
That’s true, but there are legit reasons to believe in True Corporation’s commitment. They’ve got sixth consecutive years on the DJSI and highest score on S&P Global Corporate Sustainability Assessment in 2023.
Roger, while those accolades are impressive, it’s also about the real-world impact. Let’s see if they actually achieve carbon neutrality by 2030.
PR move or not, True Corporation is setting a high bar for others. It can’t hurt to have more corporations aiming for sustainability.
Totally agree, Ronald. Even if it’s a bit of greenwashing, it’s better than doing nothing at all.
Yawn… another corporate announcement that probably won’t change anything. These huge financial maneuvers rarely result in real progress.
That’s a cynical take, technowizard_56. What do you propose instead? At least they’re trying.
EcoGeek, how about focusing on local, on-the-ground initiatives that can be scaled up? Large corporations are too slow and bureaucratic.
This is amazing! It’s great to see companies making real efforts towards sustainability. Ms. Yupa Leewongcharoen is truly a visionary leader.
Totally with you, Lisa Marie! Leaders like her are what the world needs right now.
Not convinced. Words are cheap, let’s see if their actual operations reflect their claims.
Fair point, Skeptic638. But I think it’s a step in the right direction. Hopefully, they follow through.
Wait a second, is anyone talking about telecom companies and their environmental impact previously? This seems like something totally new for the sector.
Yeah, David L, it really is. Telecommunications is traditionally seen as a tech field, not necessarily tied to sustainability.
Sandy, telecommunications companies consume a lot of energy, so focusing on renewable energy is a smart move.
Patty O, it’s about time they woke up to their impact. Better late than never.
Fascinating how the Greenshoe option was used to increase the loan amount. It shows there’s serious market interest.
I was wondering about that too. It’s a smart financial mechanism that highlights the demand for sustainable investments.
Absolutely, SarahLee. The financial market is definitely moving towards ESG-focused investments.
Does anyone else find it problematic that Mizuho Bank, one of the leaders in this deal, has previously been criticized for funding fossil fuel projects?
Good point, Andrew. It makes me question the authenticity of the sustainability claims in this deal.
Banks can change their policies over time. We should encourage these shifts rather than dismiss them outright.
I think it’s empowering to see female leaders like Ms. Yupa taking charge in such impactful organizations!
If they’re serious about climate action, they should also push for stronger policies and regulations in Thailand and beyond.
How does an ordinary consumer benefit from this? Seems like it’s more about the investors than the actual people using their services.
Good question, Paul. If True Corporation can become more sustainable, it could mean lower operating costs and potentially cheaper services for consumers.
Paul and Olivia, don’t forget about the positive environmental impact which benefits everyone in the long run.
I worry that focusing on big corporations distracts from grassroots environmental efforts which are crucial too.
True Corporation’s step towards AI to curb energy usage is intriguing. AI can play a significant role in optimizing operations and reducing waste.
It’s worth noting that this loan could set a precedent for other companies in Thailand to pursue sustainable financing.
Will this massive loan actually make a difference? These are lofty goals, and I’ve seen many companies fall short.
Interesting how these big banks are both the problem and the solution when it comes to sustainability.
True Corporation’s solar cell expansion plan is a solid move. We need more renewable energy projects in Southeast Asia.