Allen & Overy advises on Thai Union Group's sustainability-linked bond in Thailand
06 August 2021
The SLB is not only the first SLB to be launched in Thailand, but is also the first globally to introduce both step-up and step-down coupon rate features related to the achievement of Sustainability Performance Targets (SPTs). Investors in the SLBs will be entitled to a lower or higher coupon rate should TU achieve or fail to achieve these SPTs in 2023 and 2026 respectively.
Partner Suparerk Auychai commented: “Demand for this bond was significant, which is evidence of investors’ confidence in TU’s business and solid financial standing. It also shows a real willingness to invest in sustainability and environmental, social and corporate governance (ESG) financing more broadly.”
The A&O team was led by partner Suparerk Auychai, with substantial support from counsel Doungporn Prasertsomsuk and associate Pradchayada Maneeratanapron.
The SLB follows the launch of TU’s inaugural syndicated cross-border and syndicated onshore sustainability-linked loans (SLLs) in February 2021 – a transaction on which team members from A&O’s Bangkok, Hong Kong and Tokyo offices also advised. The syndicated cross-border loan comprised an originated amount of USD183m equivalent denominated in USD and JPY, with more than 20 financial institutions worldwide acting as lenders. The syndicated onshore loan in Thailand, meanwhile, comprised an originated amount of THB6.5bn equivalent denominated in THB and USD, with seven financial institutions in Thailand acting as lenders.