Bangkok: IRPC, in collaboration with KBANK, has unveiled Thailand's pioneering investment innovation based on the SETESG index, marking a significant leap in sustainable financial practices.
According to Thai News Agency, KBANK introduced its inaugural "Bonus Structured Note" investment, which tracks returns against the SETESG sustainability index. This innovation is a product of a strategic partnership with IRPC, which has embedded a robust sustainability management strategy and has committed to co-investing in this venture. The initiative underscores a concerted effort between the financial and industrial sectors to foster investments that prioritize environmental, social, and governance (ESG) factors, thereby steering the Thai capital market towards sustainable growth.
Ms. Thosaeng Chaiyapravat, Senior Vice President, Accounting and Finance at IRPC Public Company Limited, emphasized the company's focus on sustainable financial management alongside its business operations. She noted that IRPC is glad to invest in the Bonus Structured Note under Kasikornbank's Sustainability Framework, which ties returns to the SETESG index. This reflects the capability of listed companies engaged in sustainable practices and signifies an important milestone in advancing ESG financial innovations in Thailand.
Mr. Thiti Tantikulanan, Head of Capital Markets Business at Kasikornbank, highlighted the bank's longstanding commitment to sustainability and innovation within the ASEAN region. He detailed that the Bonus Structured Note represents a novel financial product, with returns linked to the SETESG index for the first time in Thailand. Funds raised will be channeled towards the bank's environmental initiatives, with an ambitious target of sustainable loans and investments amounting to 400-500 billion baht by 2030, facilitating a transition to a low-carbon economy. The bank has pledged transparency in detailing fund allocation and environmental impacts in its annual report.
The Bonus Structured Notes are distinctive, with returns pegged to the SETESG index's performance, which tracks companies engaged in sustainable business operations. Investors stand to benefit from additional returns if the index meets specific benchmarks. Through this initiative, KBANK aims to enhance awareness and integration of SETESG index-related products within the Thai capital market.