Krung Thai Bank has partnered with Singha Estate to sign a Carbon Credit Linked Interest Rate Derivatives agreement, marking the first of its kind in Thailand. This initiative aims to manage interest rate risks during periods of rising rates while providing carbon credits if ESG targets are met, reinforcing their leadership in sustainable financial services and supporting the country's Net Zero goals.

Mr. Rawin Boonyanusasan, Deputy Managing Director of Krung Thai Bank's Capital Markets Division, stated that as a leading commercial bank in the country, Krung Thai Bank is committed to continuously developing innovative financial services to meet customer needs across all dimensions. Recently, the bank collaborated with Singha Estate Public Company Limited to establish a Carbon Credit Linked Interest Rate Derivatives agreement, a new innovation in Thailand's capital market that effectively manages interest rate risks while supporting the provision of quality carbon credits for Singha Estate to offset carbon emissions from its activities, contingent upon the company's success in achieving its ESG goals. The agreement specifies the characteristics of voluntary carbon credits that comply with both Thai standards (T-VER), certified by the Thailand Greenhouse Gas Management Organization (TGO), and the international Verified Carbon Standard issued by Verra. Additionally, it includes carbon credits derived from nature-based solutions, such as forest conservation and restoration, aligning with Singha Estate's commitment to maintaining environmental and ecological balance alongside sustainable growth.

“This collaboration underscores our leadership in sustainable financial services (ESG Financial Solutions), designed to meet our clients' business needs effectively, in line with the rising interest rate trend and the new environmentally friendly business landscape. It also aligns with the United Nations' Sustainable Development Goals (SDGs), particularly Goal 13 on climate change. The bank employs comprehensive financial tools to manage interest rate risks. Furthermore, if Singha Estate can reduce greenhouse gas emissions and meet its ESG targets, the bank will support the procurement of carbon credits to promote environmentally friendly business practices, contributing to the country's Net Zero Emissions goal for sustainable growth, in line with Krung Thai's vision of supporting Thailand towards sustainability,”

Ms. Thitima Rungkwansiriroj, CEO of Singha Estate Public Company Limited, emphasized the significance of this agreement, particularly in preparing business development plans to address climate change under the organization's mission of fostering balanced diversity for sustainable growth in economic, community, and environmental aspects (Sustainable Diversity). Last year, the company took action against climate change, aiming for carbon neutrality by 2030 through partnerships to reduce carbon emissions across the supply chain, increasing the use of clean energy in all business units, and enhancing carbon absorption by planting forests in areas adjacent to parks to create firebreaks, with a goal of establishing 1 million square meters of conservation area by 2030.

“Additionally, we are expanding into environmentally friendly businesses, investing in low-carbon power plants, creating eco-industrial parks in Ang Thong province, and developing clean energy infrastructure projects for our subsidiaries, such as installing 1.3 megawatts of solar panels in our hotel projects in Thailand and the Maldives. This will pave the way for future collaborations with business partners, generating sustainable income while fostering a happy society and improving quality of life wherever our company operates,” Ms. Thitima stated.