This pioneering Blue Bond, the first of its kind issued by a Thai financial institution, boasts a 3-year term with a substantial issue size of 3,000 million baht and promises a fixed coupon rate of 2.78% per annum. Big names such as ADB, DNV (Thailand) Co., Ltd., and Fitch Ratings have lent their credentials to this initiative, certifying, advising, and assigning a sterling AAA credit rating, respectively. Such illustrious support speaks volumes of EXIM Thailand’s robust financial health.
The heart of this Blue Bond lies in its noble purpose: to funnel resources into ventures committed to the preservation of marine and coastal resources. This aligns seamlessly with the “IGNITE THAILAND” vision and the government’s policy to propel sustainable development on economic, social, and environmental fronts.
Dr. Paopoom eloquently addressed the gathering, highlighting the escalating environmental pressures and the imperative for countries, including Thailand, to respond decisively. Thailand has pledged to achieve carbon neutrality by 2050 and net zero emissions by 2065. The stakes are high, as seas and oceans, teeming with marine life and oxygenated vitality, form the bedrock of our ecosystem. A shift towards a green economy necessitates the nurturing of a blue economy, safeguarding ecosystems for over 3 billion people globally and supporting 820 million jobs in fishing and related industries.
Maritime transport, handling 80% of international trade volume, underscores the economic significance of our oceans. UNCTAD projects the export value in ocean-based industries (blue economy) at a staggering 2.5 trillion US dollars. Yet, bridging the investment gap to meet UN Sustainable Development Goal 14 (SDG 14) – conservation and sustainable use of oceans, seas, and marine resources – demands nearly 175 billion US dollars annually. Alarmingly, the average annual investment during 2015-2019 was less than 10 billion US dollars, leaving a vast void of 165 billion dollars per year.
Dr. Paopoom further illuminated that Thailand’s marine economic value, encompassing multiple industries, constitutes around 30% of the GDP, employing 26% of the workforce. The government’s focus on marine conservation through collaborative efforts resulted in the landmark Blue Bond issuance, blending green and blue financial innovations to bolster economic growth and ecological conservation. This initiative aligns with the “IGNITE THAILAND” vision and fosters Thailand’s evolution as a sustainability-centric financial hub.
In a moment of pride, Dr. Rak Vorrakitpokatorn, President of EXIM Thailand, shared insights into the institution’s journey towards becoming a Green Development Bank. Tasked with fostering Thailand’s international trade and eco-friendly investment ecosystem, EXIM Thailand strives to blend green and blue economies to transition towards a low-carbon, sustainably developed society. Since 2022, EXIM Thailand has issued environmental sustainability bonds worth 11,500 million baht. The latest 3,000-million-baht Blue Bond has garnered overwhelming interest from institutional and large investors, with subscription amounts reaching 2.5 times the issue size. The funds are earmarked for businesses with marine and coastal environmental concerns, encompassing hotels, marine tourism, fishing, waste management, recycling, and merchant marine activities.
Additionally, EXIM Thailand has crafted new financial instruments like the Sustainability Linked Loan (SLL) scheme, offering revolving and long-term credit facilities at an attractive interest rate of 3.85% per annum and a hefty maximum credit line of 200 million baht per entrepreneur. The Bank envisions increasing the proportion of green loans in its portfolio from the current 37% to 50% by 2027.
As Dr. Rak eloquently summed up, this Blue Bond represents a beacon of collaborative commitment from EXIM Thailand, the Ministry of Finance, and various public and private entities towards conserving our precious natural resources. Together, they strive to combat global warming, foster sustainable business practices, and secure a healthier planet for future generations.
While it sounds great to promote marine conservation, I can’t help but wonder if this Blue Bond is just another greenwashing tactic.
I understand your skepticism, but EXIM Thailand does have a track record of issuing environmental sustainability bonds. This could be a genuinely impactful initiative.
Agree with John. As someone in marine biology, any funding directed at conservation is a win given the current state of our oceans.
Sarah, you have a point. But at least this initiative is drawing attention to marine conservation. That’s a step in the right direction.
True, attention is good, but we need to ensure these funds are used effectively and transparently.
Finally, a big move towards sustainable development in Thailand. Proud moment!
It’s certainly a bold step, but I think the success of this bond will depend on the actual implementation and utilization of funds.
Let’s not forget that the government often talks big and delivers little. I’ll reserve my excitement until I see real results.
Why focus on the sea? Shouldn’t we prioritize fighting deforestation instead?
The ocean is crucial too, GamerDude. Marine ecosystems support countless species and play a vital role in our climate.
We need to address both! Our survival depends on healthy forests and oceans. They both play critical roles in our ecosystem.
It’s not an either-or situation. Investments need to be made in multiple areas to combat climate change effectively.
It’s encouraging to see the financial sector taking such initiatives. This could set a precedent for other countries to follow.
Agreed. If successful, this could inspire similar projects around the world, amplifying the impact.
Or it could flop and deter future investments. High-risk, high-reward.
A fixed coupon rate of 2.78% is quite attractive. Might consider adding this to my portfolio.
It’s not just about returns. The broader impact on marine conservation could be a game-changer.
Combining good returns with positive environmental impact? That’s a win-win in my book!
Are there any guarantees that the funds will be used for the proposed projects?
Considering the agencies backing this initiative, like ADB and Fitch Ratings, it seems there’s a robust oversight mechanism in place.
Oversight or not, unfortunately, corruption can still happen. We need transparency in how these funds are allocated.
The support from top-tier financial institutions really adds credibility to this Blue Bond. Kudos to EXIM Thailand!
Indeed! This project’s backing by reputable agencies might encourage other investors to participate.
Don’t be blinded by big names! Even big institutions can fail or be complicit in misuse of funds.
I hope this sets a trend for other developing nations to follow. Blue Bonds might be the future of sustainable finance.
Optimism is nice, but developing nations face significant challenges that might limit the effectiveness of such bonds.
It’s about time financial markets started contributing more actively to environmental conservation. This is a very welcome development.
This all sounds great on paper. Let’s hope EXIM Thailand can execute their ambitious plans smoothly.
I’m curious about the exact projects that will be funded by this bond. Hope they publish detailed reports on their progress.
Transparency in reporting will indeed be crucial for maintaining trust and attracting future investments.
The ultimate test will be the actual impact on marine conservation. Words are easy; meaningful action is what counts.
If successful, this can serve as a global model. Well done, Thailand!
Yes, success is key. Many projects start with good intentions but falter in execution.
This initiative could also significantly boost Thailand’s economy by attracting more eco-conscious investors.
True. Investors are increasingly looking to support sustainable projects. Win-win situation for economy and environment.
Noble cause, but the % return seems pretty low. Are there any other incentives for investors?
The attraction here isn’t just financial gain but also contributing to a significant environmental cause. Some investors value that.