Thailand’s inaugural sustainability-linked bonds drew nearly three times more investor interest than the initial 20 billion baht (US$580 million) offering, prompting the government to increase the issuance by another 10 billion baht, according to a report in the Bangkok Post.
“The book-building process for the bonds generated huge interest from investors,” attracting 55.3 billion baht of purchase proposals, Patchara Anuntasilpa, director-general of the Public Debt Management Office, is quoted as saying in the report published on November 28.
“As a result, the Public Debt Management Office has increased the issue size to 30 billion baht at an annual interest rate of 2.7%.”
He says interested investors include local life insurers, fund management companies and securities firms, as well as foreign investors.
Sustainability-linked bonds are designed to promote sustainable environmental and social development. Issuers have to comply with set performance indicators and targets.
Patchara says targets in the Thailand bond offering include capping greenhouse gas emissions at 388,500 kilotonnes of carbon dioxide equivalent by 2030.
Spokespersons for the Public Debt Management Office did not immediately respond to questions from Asia Asset Management.