Thai Union Group, the world’s leading seafood processor, successfully priced on July 20 2021 a 5-billion-baht (US$243.4 million) seven-year senior, unsecured sustainability-linked bond (SLB), with an interest rate of 2.47 % per annum, for institutional investors.
This is the first SLB that has been launched in Thailand and follows the launch of Thai Union’s inaugural sustainability-linked loan in February 2021. The SLB is also a significant step forward for blue finance – financing for projects benefiting oceans—and the seafood industry as a whole.
TRIS Rating rated the bond as A+ with a stable outlook on July 16. Bank of Ayudhya Public Company (Krungsri) is the sole arranger for this offering, while both Krungsri and MUFG Securities Asia, the securities entity of Mitsubishi UFJ Financial Group, are the joint sustainability-linked structuring advisers.
The offering has garnered demand of approximately 8.9 billion baht or more than 2.23 times the offered amount. This led Thai Union to increase its issue size from 4 billion baht to 5 billion baht in response. This encouraging demand shows investors’ confidence in Thai Union’s business and a real willingness to invest in sustainability.
“Sustainability is central to our operations and business philosophy,” says Thiraphong Chansiri, president and CEO of Thai Union. “This type of blue financing is another way we can work with our partners in the financial community on products that help preserve the oceans, which are vital, not only to our business, but the planet, while providing healthy and nutritious products that consumers globally are demanding.”