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IFC Subscribes to First Green Bond Issued by TMBThanachart Bank Focused on Electric Vehicles in Thailand Publisher: International Finance Corporation Date: 18 October 2022 Subject: Electric Vehicles License: Creative Commons Attribution 3.0 Unported Source: PressReleasePoint |
Bangkok, Thailand, October 18, 2022 —In a bid to strengthen Thailand's nascent electric vehicle (EV) industry, IFC is subscribing to a $100 million green bond issued by TMBThanachart Bank Public Company Limited (ttb). The first green bond to focus exclusively on the EV industry in Thailand, will be key to achieving a 40 percent reduction in greenhouse-gas (GHG) emissions by 2030 in the country.
IFC's support will allow ttb to extend financing to customers who want to opt for EVs, including Battery-powered Electric Vehicles (BEVs), Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric Vehicles (PHEVs). Adhering to the International Capital Market Association (ICMA) Green Bond Principles, the bond aims to grow financing—to $610 million by the end of 2026—for purchasing EVs.
"ttb always commits to operate toward a sustainable banking framework. As a leader in auto loans for the Thai EVs market, this collaboration with IFC will enable ttb to grow its green lending business further as well as driving the country to achieve its aspirations in the EV market," said Mr. Chatcharit Tungtakeangkiat, Deputy Chief-Head of Automotive Lending Product of ttb .
Thailand has seen a rapid increase in CO2 emissions, with fossil-fuel driven vehicles accounting for 17 percent of the total emissions. In 2019, levels of particulate matter in Bangkok exceeded the WHO air quality guidelines and standards, costing the health care and tourism sectors up to $196 million. In response, a vibrant electric vehicles industry in Thailand will strengthen the nascent EV ecosystem, helping tackle the country's climate vulnerabilities.
With strong government support, Thailand aims to emerge as the global hub for EV manufacturing in the region. In August, the Cabinet approved 2.92 million baht to subsidize EV purchases. EV production in the country is expected to reach 1 million units by late this year or early next year.
"Given the economic impacts of the COVID-19 crisis, private sector-led climate financing is crucial to Thailand's transition toward a net-zero world. By supporting ttb, IFC will help attract private capital for a relatively new asset class such as electric vehicles," said Jane Yuan Xu, IFC Country Manager for Thailand and Myanmar . "Further, IFC's subscription will encourage consumers and manufacturers in the country to make climate-friendly choices, contributing to green transportation and broader green growth across sectors."
IFC has been at the forefront of promoting sustainable finance in Thailand. In May 2022, IFC committed to invest in a blue bond to be issued by ttb , the first commercial bank to do so in Thailand. In November 2021, IFC arranged a landmark blue loan ($300 million) for global plastic resin manufacturer Indorama Ventures Public Company Limited to increase its recycling capacity to 50 billion PET (polyethylene terephthalate) bottles globally a year by 2025. In June 2018, IFC invested in a green bond issued by TMB—before the merger with Thanachart Bank Public Company Limited—which was the first green bond issued in Thailand.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org
About TMBThanachart (ttb)
TMBThanachart Bank Public Company Limited (ttb) is the merger of TMB Bank PCL. and Thanachart Bank PCL., located in Thailand. It has integrated the strengths and potential of both banks, and follows its company philosophy "Make REAL Change" to create a new way of banking. The Bank not only offers superior financial products and services to customers, but also commits to providing financial literacy and financial solutions that are personalized and fitted to the needs of each customer segment throughout their life stages. The Bank's mission is to improve Thai's life-long financial well-being today and in the future.
More information, please visit www.ttbbank.com .
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