6 March 2024
Bangkok (6 March 2024) -
Krungsri (Bank of Ayudhya PCL) unveils its 2024 business strategy for the Corporate and Investment Banking Group, placing a significant emphasis on ESG finance. The aim is to develop comprehensive solutions tailored to the sustainable financial market while enhancing the capabilities of fully integrated investment banking services, and also maintaining a steadfast focus on achieving ongoing success in delivering project finance, M&A and IPO services. Krungsri is committed to meeting and satisfying the needs of customers both domestically and globally, reinforcing its position as a trusted partner for businesses and fostering sustainable growth together.
Mr. Prakob Phiencharoen, Krungsri Head of Corporate and Investment Banking Group, revealed, “Krungsri has achieved continuous success in advancing the interests of its corporate and investment banking customers. Last year, our loan growth was around 2.6% compared to the previous year. We remained steadfast in our commitment to supporting sustainable finance, serving as a bookrunner and lead manager of bonds and debentures for sustainability and green projects, while also providing ongoing green loans to various major organizations. Our assistance in ESG transformation, through the delivery of knowledge and understanding about ESG policy, is instrumental in paving the way towards sustainable growth for both our customers and the Bank. Additionally, our collaboration as a representative of the Thai Bankers’ Association in working closely with 13 key regulatory agencies, and the Bank of Thailand’s initiative in introducing the Thailand Taxonomy, a classification system for environmentally-sustainable economic activities, underscores our dedication to facilitating the businesses' transition towards environmental sustainability.”
Fostering Sustainable Growth through Participation in Successful Big Deals
In the past year, Krungsri played a vital part in assisting many corporate customers in achieving sustainable business operations through various major deals.
- Acting as a mandated lead arranger and book-runner (MLAB) and sustainability coordinator for the sustainability-linked loan (SLL) secured by Thai Union Group Public Company Limited (Thai Union) worth 11,500 million baht
- Serving as the Green Structuring Advisor and the sole lender for a green loan to SCG Packaging Public Company Limited (SCGP) worth 3,000 million baht
- Providing green loan to Central Pattana Public Company Limited (CPN) worth 500 million baht
- Jointly acted as a bookrunner and lead manager of bonds and debentures for sustainability and green projects with several key organizations, such as
- A green bond issued by the Export-Import Bank of Thailand, totaling 3,500 million baht
- The inaugural green bond issued by Gulf Energy Development Public Company Limited, totaling 8,000 million baht
- The inaugural green bond issued by Electricity Generating Public Company Limited, totaling 7,000 million baht
- A sustainability debenture issued by Bangkok Expressway and Metro Public Company Limited, totaling 6,500 million baht
- A green bond issued by Ratch Group Public Company Limited, totaling 1,000 million baht
- A green bond issued by WHA Utilities and Power Public Company Limited, totaling 500 million baht
Furthermore, Krungsri issued Thailand's inaugural green and blue bond, totaling USD 400 million, with the purpose of bolstering efforts in climate change management and marine resource conservation.
In addition to the expertise and achievements in ESG-related businesses, Krungsri also provides investment banking advisory services to various major deals, such as
- Supporting of index transition transactions for customers in accordance with the Bank of Thailand’s policy to shift the Thai reference rate from Thai Baht Interest Rate Fixing (THBFIX) to Thai Overnight Repurchase Rate (THOR)
- Collaboration with MUFG in the offering of structured trade finance products to customers in the energy and utilities sector and the food and beverage sector
- Offering of digital services such as Direct Debit API, Payment API, One Payment Application, Cash Link, Corporate CHQ and Credit Product Program to enhance management efficiency and facilitate payment of customers
Advancing Business Solutions, Elevating Advisory Services, and Empowering Businesses with Competitive Edge
With increasing needs for financing, the trends of business expansion into regional and international markets, and the considerations of driving business towards sustainability, the Corporate and Investment Banking Group mapped out its business directions for 2024 by placing priorities on
creating the financial solutions that cater to the sustainable financial market along with
improving the delivery capability of investment banking services so as to enhance the competitiveness of Thai businesses in a more fully-integrated manner. Major operational plans of the Group are as follows:
- Striving to develop the financial products and services to facilitate customers in the transition to sustainable finance. In this connection, the ESG Finance Department (EFD) has been moving ahead to provide knowledge and understanding about ESG finance and serve as an adviser for the transition planning process by working closely with the MUFG networks while at the same time, arranging the Bank’s loan portfolio in alignment with Thailand Taxonomy. Furthermore, the Bank will also carry on the knowledge dissemination activities through various seminars including Krungsri-MUFG ESG Symposium 2024, a major seminar aiming to foster an ESG ecosystem for Thailand.
- Enhancing the delivery capability of investment banking service by focusing on the offering of advisory service and launching of new financial products and services, through collaboration with every unit within Krungsri Group, the global networks of MUFG, and the networks of partner banks in the ASEAN region, to ensure that the services provided to customers are efficient, complete, and meet the customer’s needs. These services encompass mobilization of funds through project financing and structured financing, mergers and acquisitions, debt capital markets, equity capital markets, and so on. In the past year, there have been Initial Public Offerings (IPOs) offered to the public for the first time by several companies, such as Samart Aviation Solutions Company Limited (SAV) for listing on the Stock Exchange of Thailand in the Services industry group, Transportation & Logistics sector. SAV is currently granted an exclusive license to operate as the sole air navigation service provider in Cambodia.
Currently, Krungsri has also engaged as a financial advisor and lead underwriter for INETREIT’s capital increase for an investment in a data center, as well as providing financial advisor services for IPOs for corporates in various sectors, including services and construction materials. Furthermore, concerning mergers and acquisitions services, Krungsri has served as an exclusive financial advisor for Super Energy Corporation Public Company Limited in relation to the strategic partnership transaction for SUPER’s solar farms business in Thailand with a leading global investor in sustainable infrastructure.
“We remain dedicated to being a trusted partner of our customers, fostering sustainable growth through customer-centric service. Leveraging the wealth of knowledge, professional teamwork, and strong networks of Krungsri Group and MUFG, we are fully confident in our ability to provide total solutions that meet the diverse needs of customers across domestic and international markets. Most importantly, we will pursue our efforts in promoting sustainability-linked businesses according to the ESG model, particularly during this transitional period, ensuring that our customers grow their business sustainably together with us. This year, we target a loan growth of around 4-6%,” concluded Mr. Prakob.