In Short : Thailand has issued Asia’s first sovereign sustainability-linked bond (SLB), supported by the Asian Development Bank (ADB). The bond ties financial terms to achieving sustainability performance targets, advancing Thailand’s climate goals, including net zero emissions by 2050. This milestone showcases innovative financing, inspiring other Asian nations to adopt sustainable financial instruments for environmental and economic progress.
In Detail : BANGKOK, THAILAND — The Asian Development Bank (ADB) assisted the Public Debt Management Office (PDMO) under the Ministry of Finance of Thailand in issuing the first sustainability-linked sovereign bond (SLB) in Asia. This was the third SLB in the world after Chile and Uruguay.
The bond, which was issued on 25 November 2024 with a 15-year maturity, raised 30 billion baht (approximately $880 million), and was more than 2.7 times oversubscribed by local and international institutional investors. SLBs are financial instruments whose characteristics can vary based on whether the issuer meets the predefined key performance indicators (KPIs) and sustainability performance targets (SPTs).
The bond aims to reduce the country’s greenhouse gas emissions by 30% by 2030 from the business-as-usual level and targets the increase of zero emission vehicles (ZEVs) by 440,000 passenger cars and pickup trucks by 2030.
“This bond reflects ADB’s commitment to innovative financial solutions to support Thailand’s climate targets and commitments, building on our support for PDMO’s first sustainability bond in 2020,” said ADB Country Director for Thailand Anouj Mehta. “This issuance of the SLB underscores the significant role that capital markets can play in attracting both public and private investment which are crucial to supporting the country’s transition to carbon neutrality by 2050 and achieving net zero emissions by 2065.”
“We hope that the issuance of the SLBs will serve as a good example for both state enterprises and the private sector in collaboratively promoting sustainable development in Thailand, while contributing to the development of local sustainable capital markets,” said PDMO Director General Patchara Anuntasilpa. “We appreciate the support from ADB, relevant government agencies, development partners, and joint lead arrangers for their support in designing the SLB structure, which reflects Thailand’s commitment to addressing climate change and fostering a sustainable economy and society.”
ADB provided technical assistance through the Green, Social, Sustainable and Other Labeled (GSS+) Bonds Initiative for Southeast Asia, a collaboration between the ASEAN Catalytic Green Finance Facility (ACGF) and the Asian Bond Markets Initiative (ABMI). The ACGF is an initiative of the ASEAN Infrastructure Fund to accelerate green infrastructure investments in Southeast Asia. The ABMI is an initiative of the governments of ASEAN, the People’s Republic of China, Japan, and the Republic of Korea to develop local currency bond markets.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 69 members—49 from the region.
