• The issuance of new ESG Bonds in Thailand is showing signs of recovery in 2025 after several years of market slowdown, with the value of new bonds increasing by over 5.7% from the previous year.
  • The 2025 ESG Bond market is recovering due to the government and state enterprises increasing the issuance of Sustainability-linked Bonds and Sustainability Bonds, while the private sector is slowing down its issuance of ESG Bonds, with Green Bond issuance still below historical averages due to a decrease in new ESG projects available for investment. However, Sustainability-linked Bonds and Blue Bonds are expanding.
  • In 2025, Sustainability-linked Bonds and Blue Bonds are gaining more interest from bond issuers due to the regulatory flexibility of Sustainability-linked Bonds, which allows issuers to set their own sustainability KPIs.

Overview of ESG Bond Issuance in Thailand in 2025

The issuance of new ESG Bonds in Thailand is beginning to show signs of recovery in 2025 after several years of market slowdown, with new bond issuance totaling 186,404 million baht (as of December 22, 2025), an increase of 5.7% from the previous year, which was 176,333 million baht.

Market Recovery of ESG Bonds Driven by Government and State Enterprises Adjusting Bond Issuance Direction

The government and state enterprises are shifting towards issuing more Sustainability-linked Bonds and Sustainability Bonds, which has become a significant driving force for the ESG Bond market's recovery in 2025, with total new issuance exceeding 142,434 million baht (as of December 22, 2025), an increase of 24.9% from the previous year, which was 114,000 million baht.

In 2025, the Ministry of Finance expanded the issuance (Re-open) of Sustainability-linked Bond SLB406A up to 7 times this year, amounting to over 111,434 million baht (as of December 22, 2025), an increase of 271.4% from the previous year, which was 30,000 million baht. This issuance of SLB406A was the first to restructure debt from the impacts of COVID-19.

State enterprises, through state financial institutions (SFI), increased the issuance of Sustainability Bonds in 2025 from 11,000 million baht the previous year to 20,000 million baht (as of December 22, 2025), representing an increase of 81.8% to refinance loans related to sustainability projects and to repay funds used for lending in social development projects.

Additionally, the Electricity Generating Authority of Thailand issued a 2,000 million baht Sustainability-linked Bond to invest in projects to expand and improve the electricity transmission system.

Private Sector ESG Bond Market Slows, but Sustainability-linked and Blue Bonds Grow

The issuance of new ESG Bonds from the private sector remains sluggish in 2025, with private sector issuance totaling 43,970 million baht (as of December 22, 2025), down 29.5% from the previous year, which was 62,333 million baht, due to a contraction in the issuance of Sustainability Bonds and Social Bonds.

While the issuance of Green Bonds from the private sector increased from the previous year, it remains below historical averages, as the private sector currently has limited additional ESG projects available for investment. The private sector has resumed issuing Green Bonds, increasing by over 62.5% from 6,800 million baht the previous year to 11,050 million baht in 2025 (as of December 22, 2025), but the issuance value is still considered low compared to the average of 25,805 million baht from 2021 to 2023, as the private sector had already invested in ESG projects earlier, resulting in limited additional ESG investment projects at this time.

The issuance of Sustainability-linked Bonds and Blue Bonds from the private sector began to expand in 2025, with the private sector increasingly issuing Sustainability-linked Bonds, rising from 15,360 million baht the previous year to 28,800 million baht (as of December 22, 2025), an increase of over 87.5%, with most funds being used to repay debts and for working capital, some of which are related to sustainable marine resource conservation projects.

Blue Bonds have gained more interest from the private sector in energy and food this year, with new issuance exceeding 4,120 million baht to invest in projects aimed at reducing greenhouse gas emissions (Mitigation) and enhancing sustainability, particularly projects related to marine and water resource conservation.

Increasing Interest Trends in Sustainability-linked Bonds and Blue Bonds in 2025

The Kasikorn Research Center views that Sustainability-linked Bonds are gaining more interest from the government, state enterprises, and the private sector due to regulatory flexibility, allowing issuers of Sustainability-linked Bonds to set their own sustainability KPIs.

As for Blue Bonds, they are still in the early stages of the market, thus growing rapidly but with low liquidity and limited investment information compared to Green Bonds, as the number of issuers and bonds remains small, with only 4 issuers and 7 bonds since the first issuance in 2024 through 2025.