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Allen & Overy advises the Export-Import Bank of Thailand on its THOR-linked market-first green bond transaction

Allen & Overy has advised the Export-Import Bank of Thailand (EXIM Thailand) on the establishment of its medium-term note programme and domestic offering of two tranches of green bonds under the programme to the value of THB5bn (USD135m).

This is a market-first transaction that sets a new standard for Thai Overnight Repurchase Rate (THOR)-linked long-term bonds in Thailand.

EXIM Thailand’s issuance was divided into two separate tranches, which comprised (i) three-year bonds to the value of THB3bn with a fixed interest rate of 2.25% p.a. and (ii) four-year bonds to the value of THB2bn with a floating interest rate of compounded THOR +0.34% p.a.

EXIM Thailand is the first state-owned specialised financial institution in Thailand to have established a sustainable finance framework and subsequently issued green bonds using THOR as the applicable reference rate. This is in line with the Bank of Thailand’s relevant targets, as well as the applicable guidelines and market conventions of the Thai Bond Market Association given the upcoming phase-out of LIBOR.

EXIM Thailand operates under the supervision of Thailand’s Ministry of Finance and provides financial support and risk protection to Thai exporters, importers, as well as investors, under the auspices of the Royal Thai Government’s strategic development policies.

The A&O team was led by Bangkok-based counsel Doungporn Prasertsomsuk and Bangkok-based associate Pradchayada Maneeratanapron, with support from Singapore-based partner Aloysius Tan.

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