The first ever social bond issued through a state-owned financial institution under ASEAN standards.
Thailand’s first social bond issued by the Government Savings Bank (GSB) has issued a 10bn Thai baht ($295 million) social bond with a maturity of 3 years, to raise money for eradicating extreme poverty.
The bond was sold to Thai institutional investors and high net worth investors, contributing to the development of a sustainable bond market in Thailand. It was supported by the Asian Development Bank and the finance raised will now be put to projects that reduce inequality across the country.
ADB country director for Thailand, Anouj Mehta, commented “This innovative transaction highlights ADB’s commitment to supporting the development of Thailand’s sustainable capital market as a way to help the country achieve a long-term, green, and inclusive recovery from COVID-19. GSB is showing how state-owned financial institutions can demonstrate their commitment to social sustainability.”
ADB provided technical assistance through a collaboration between the Asian Bond Markets Initiative (ABMI) and the ACGF. 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. The ACGF is an initiative of the ASEAN Infrastructure Fund to accelerate green infrastructure investments in Southeast Asia.
ADB financial sector specialist Kosintr Puongsophol said: “We hope that other state-owned financial institutions in the region will view this transaction as a model, paving the way for more sustainable bond issuances and greater transparency among state-owned enterprises.”