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Krungthai – PTTEP is engaged in the first management of foreign exchange risk linked to ESG in Thailand; continue the success of the PTTEP digital link

Krungthai and PTTEP strengthen their successful collaboration in offering PTTEP digital bonds by entering into Thailand’s first ESG-linked currency swap agreement.

Payong Srivanich, Chairman and CEO of Krungthai Bank, revealed that after the successful offer of PTTEP digital bonds where 6 billion baht was fully subscribed in 8 minutes and 12 seconds, Krungthai and PTT Exploration and Production Public Company Limited (PTTEP) have entered into an ESG-linked currency swap agreement (CSS) for the PTTEP digital bond. This is the first time in Thailand that ESG reports are linked to currency swaps, which is an important stepping stone for the Thai capital market and financial sector to extend ESG principles to financial risk management, in addition current ESG operations which mainly focus on credit products such as green loans. The ESG-linked currency swap will link Krungthai’s and PTTEP’s ESG objectives to the interest rate of the swap and the rate can rise or fall depending on each company’s sustainability index.

This agreement further underscores Krungthai’s commitment to its mission, conducting business in a sustainable manner and respecting all stakeholders, as well as strengthening the bank’s position as a leading provider of ESG financial solutions. The bank relentlessly develops digital infrastructure and uses it to improve the quality of life of Thais and achieve the Sustainable Development Goals (SDGs). The bank uses technology to improve efficiency and modernize the Thai capital market by offering innovative products that promote economic growth. Pao Tang mobile app, developed by Infinitas by Krungthai to be an open digital platform in Thailand, aims to make activities relevant to all aspects of life simpler, safer, more convenient and accessible at all times and at any place. Activities include payments under government programs through G-Wallet and activities related to health care, education, savings and investment.

The bank also puts a lot of effort into solving environmental problems, for example by providing green loans and offering paperless products and services. The newest PTTEP digital bond is scriptless and can be taken out through Pao Tang, making the subscription paperless and requiring no trip to a bank branch. With over 33 million users already on Pao Tang and the app familiar to most people, its use as a subscription channel has helped create investment products, including 1 baht bonds and digital bonds. PTTEP, whose minimum subscriptions were only 100 and 1,000 baht respectively, available and easily accessible to people from all walks of life. The digital platform is also highly transparent, secure and verifiable. The bank is ready to partner with companies and organizations to develop innovative financial and investment solutions to meet the needs of different groups of clients, so that they can have diversified investment portfolios and manage their risk. in the face of fluctuations in financial markets.

Sumrid summons, Executive Vice President of Finance and Accounting, PTTEP, said the ESG-linked currency swap agreement of this PTTEP digital bond is an effort to manage currency risk in accordance with the functional currency of the PTTEP. company and intended use of the product. The agreement underscores the company’s commitment to becoming a sustainable organization that promotes mutual benefits for all stakeholders and strengthens the country’s energy security.

Marketing Strategy Team

November 8, 2021


Thai Krung Bank pcl published this content on 08 November 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 08 November 2021 06:17:15 UTC.

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