Krungthai Bank and HMC Polymers introduce Thailand's first derivatives linked to sustainable polypropylene development goals

Rawin Boonyanusasna, Head of Global Markets Group at Krungthai Bank, stated that as a leading commercial bank in Thailand, Krungthai Bank is innovation-driven and prioritizes the environmental, social, and governance (ESG) aspects of its operations. Krungthai Bank, committed to fostering sustainable business practices, has successfully developed financial management instruments that align with customers' ESG goals, thereby assisting them in achieving their sustainability objectives. Recently, the bank partnered with HMC Polymers Company Limited, a leading producer and distributor of polypropylene (PP) in Thailand, to issue derivatives linked to HMC Polymers's sustainable product development, including bio-based, chemically recycled, and mechanically recycled PP, with the company's performance in sustainable product development serving as criteria for lowering transaction costs.

Rawin added, "This issuance of Thailand's first sustainable product-linked derivative is considered a shared achievement between the two organizations. Together, we support the development and use of environmentally friendly products. The deal addresses both organization-level and country-level greenhouse gas emissions reduction targets and contributes to making positive changes. This aligns with the bank's aim to reshape client value proposition and promote sustainability with innovation."

Corso Uzielli, President of HMC Polymers Company Limited, stated that, as the first and largest PP producer in Thailand, HMC Polymers continues to innovate, particularly in the area of sustainable PP products. These products include bio-based PP from used cooking oil, which helps reduce waste and carbon emissions during production; chemically recycled PP made through a chemical process certified ISCC PLUS by the International Sustainability and Carbon Certification; and mechanically recycled PP from post-consumer recycled plastics (PCR) and post-industrial recycled plastics (PIR). This mechanical recycling process is certified by the Global Recycled Standard (GRS). HMC Polymers integrates sustainable product development with financial risk management by entering into a sustainability-linked derivative contract with Krungthai Bank, making this the first instance of linking sustainable product development to financial management. Furthermore, HMC Polymers remains committed to production excellence and sustainable business practices that enhance the quality of life for people and society.

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