Because of its experience and expertise in sustainability-linked financial products, Krungsri has been appointed as sustainability coordinator aside from acting as the sole lender of this loan. The structure of interest rates for SLL is associated with the Sustainability Performance Targets (SPTs), where the Bank will adjust down the interest rate annually if the company can achieve the specified sustainability goals.
Mr. Danaidej Ketsuwan, Chief Financial Officer, SCG Packaging Public Company Limited, (SCGP), stated, "SCGP has always prioritized sustainability in business operation, along with Circular Economy principle to optimize natural resources. It is a good opportunity that Krungsri, our important business and financial partner, has shared the same goal to encourage sustainable business. We are delighted to receive the support on this Sustainability-Linked Loan or SLL, which requires the achievement of criteria on ESG and KPIs as agreed to grant the loan approval. SCGP receives SLL support from Krungsri, with the total loan amount of THB 5 billion for a term of four years. The structure of loan interest rates is associated with the Sustainability Performance Targets (SPTs) where the rates will be adjusted down in line with operational achievements of sustainability goals. The three SPTs include; reducing greenhouse gas emissions according to the set target, managing water resources by reducing the use of water from external sources, and increasing sales portion of eco-friendly goods and services with a SCG Green Choice label. SCGP is the first packaging solutions provider in ASEAN who received the Sustainability-Linked Loan. This SLL demonstrates that sustainability can increase business opportunities, and it is an important milestone to make our business thriving and sustainable in ASEAN.
Mr. Pornsanong Tuchinda, Krungsri Head of Commercial Banking, said, "Krungsri remains committed to becoming a trusted banking partner for our corporate customers, as well as adhering to the Environmental, Social, and Governance (ESG) principles. We continue to develop financial products for ESG-related businesses, particularly Sustainability-Linked Loan (SLL), as an alternative for our commercial banking customers through the synergy between MUFG's expertise and network together with Krungsri's unique strengths. This SLL is an extension of environmental cooperation with SCGP, and Krungsri firmly believes in SCGP's strengths in finance and ongoing ESG business operation in which SCGP is considered Thailand's and the region's leader in sustainability. We provide this SLL as another solution to create added value for our customer and support them in propelling the sustainable business to bring about change for consumers and industries according to its goals. Moreover, this cooperation will be another important step to expand SCGP's business in ASEAN, which is in line with Krungsri's goal to connect customers' needs across ASEAN and help them grow, with the strong supports from Krungsri and MUFG regional networks."
Source: Bank of Ayudhya