ThaiBev launches inaugural Sustainability-Linked Loan, reinforcing ThaiBev's commitment to "Enabling Sustainable Growth" strategy

Thai Beverage Public Company Limited (ThaiBev), Thailand's largest and Southeast Asia's leading beverage producer and distributor, has successfully completed THB 10 billion Sustainability-Linked Loan (SLL) with Bank of Ayudhya Public Company Limited (Krungsri), the first SLL for a local beverage company in Thailand, Southeast Asia and Asia Ex Japan, signifying ThaiBev's ongoing commitment to sustainability. Krungsri and MUFG acted as the Joint Sustainability Structuring Advisor.

The transaction exemplifies ThaiBev's dedication to incorporating sustainability into its daily operations and financing strategy, aligning with ThaiBev's "Enabling Sustainable Growth" strategy. The SLL is tied to two Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs), focusing on ThaiBev's environmental commitments to 1) reduce scope 1 and 2 GHG emissions to 50% by 2030 from a 2019 baseline, and 2) increase power consumption from renewable energy sources to 50% of total energy consumption by 2030 from a 2022 baseline. Achieving the SPTs will result in lower interest rate for ThaiBev.

Morningstar Sustainalytics was appointed the provider of Second-Party Opinion Report on the KPIs and SPTs and confirmed the alignment of ThaiBev's Sustainability-Linked Finance Framework to the Sustainability-Linked Loan Principles.

Tongjai Thanachanan, Executive Vice President and Chief of Sustainability and Strategy of ThaiBev said, "As a beverage and food leader in the ASEAN region, all of us at ThaiBev are conscious that industry leadership is not only about ensuring our Group's business resilience and operational excellence, but also about protecting the environment, supporting local communities, and enhancing governance. Under the environmental pillar, ThaiBev have pledged to achieve Net-Zero emissions from our operations (Scope 1) and purchased energy use (Scope 2) by 2040. Our 2030 environmental target serves as key performance indicators for the inaugural SLL, affirming the unwavering dedication to sustainability. ThaiBev is pleased to receive strong support from Krungsri on this significant milestone."

Prakob Phiencharoen, Head of Corporate and Investment Banking Group of Bank of Ayudhya Public Company Limited said, "Krungsri is very pleased to continue its support for ThaiBev with the Sustainability-Linked Loan. This underscores ThaiBev's dedication to a sustainable growth strategy through clear Key Performance Indicators and Sustainability Performance Targets. The transaction aligns with Krungsri's sustainable development direction and reaffirms our readiness to pave the way for Sustainable Finance. Krungsri and MUFG are dedicated to synergizing efforts, supporting our clients to start building ESG Pathways to incorporate into their business plans, which presents a strategic opportunity for businesses aiming to adapt and thrive in a rapid changing world."

Colin Chen, Managing Director and Head of ESG Finance APAC, MUFG Bank, Ltd. said, "MUFG is very excited to partner with Krungsri for ThaiBev's inaugural sustainable finance facility. We have been following ThaiBev's strategy towards Net Zero and integrated their commitments in their financing program. We look forward to the continuing partnership with Krungsri and ThaiBev."

Greg Thong, Director, Sustainalytics Corporate Solutions of Morningstar Sustainalytics said, "We are very pleased to be supporting ThaiBev on its first Sustainability-Linked Finance Framework Second Party Opinion. Morningstar Sustainalytics considers that the ThaiBev Sustainability-Linked Finance Framework aligns with the five core components of the Sustainability-Linked Loan Principles, the KPIs meaningful and relevant in the context of ThaiBev's broader sustainability and business strategy and the prospective achievement of the SPTs to be impactful. In addition, Morningstar Sustainalytics considers the reporting and verification commitments to be aligned with the Sustainability-Linked Loan Principles."