IVGS granted B6bn sustainability-linked loan
Siam Commercial Bank (SCB) has provided a 6-billion-baht sustainability-linked loan to a unit of the global chemical company Indorama Ventures (IVL) to manage liquidity.
The amount is a long-term loan provided to IVL subsidiary Indorama Ventures Global Services Co (IVGS), according to SCB.
The goal is to manage liquidity in accordance with future performance, with the criteria calling for a cut in interest rates for years in which IVGS obtains an environmental, social and governance (ESG) score from S&P Global higher than the tally established by the bank. The company intends to draw down the loan in June 2022.
Yunyong Thaicharoen, SCB’s senior executive vice-president, said the bank emphasises ESG principles for environmental sustainability in the development of a comprehensive range of financial products and services.
In addition to embracing a customer-centric approach and designing a credit approval procedure that meets the interests of a variety of customers, the bank also closely considers environmental and social concerns, he said.
Meanwhile, Government Savings Bank (GSB) said it sold out its social bonds worth 10 billion baht to major and institutional investors during the bond offering last week.
The three-year bonds carry an annual interest rate of 2.35%.
Bank president Vitai Ratanakorn said proceeds from the bond sales would be lent to projects that aim to solve poverty. Funds will also be extended to those who cannot usually access loans, including small enterprises, those suffering from a disaster and freelancers.
The offer of social bonds serves as proof of GSB’s adoption of ESG principles, Mr Vitai said.
‘‘ SCB emphasises environmental sustainability in developing a range of products and services.
YUNYONG THAICHAROEN
SEVP, SCB