Asia got its first-ever sustainability-linked bond (SLB) with the support extended by The Asian Development Bank (ADB) to Thailand’s Public Debt Management Office (PDMO) under the Ministry of Finance marking a major milestone for the region. The bond, issued on 25 November 2024, has a 15-year maturity and raised 30 billion baht (approximately $880 million). It is the third SLB globally, following issuances by Chile and Uruguay, and was more than 2.7 times oversubscribed by both local and international institutional investors.
SLBs are innovative financial instruments whose terms vary depending on the issuer’s ability to meet predefined key performance indicators (KPIs) and sustainability performance targets (SPTs). The Thai bond aims to achieve two critical goals: a 30% reduction in greenhouse gas emissions by 2030 compared to business-as-usual levels and the deployment of 440,000 zero-emission passenger cars and pickup trucks by 2030.
“This bond reflects ADB’s commitment to innovative financial solutions that advance Thailand’s climate goals,” said ADB Country Director for Thailand, Anouj Mehta. “The SLB issuance highlights the critical role of capital markets in mobilising public and private investments to support Thailand’s transition to carbon neutrality by 2050 and net zero emissions by 2065.”
