Allen & Overy advised Export-Import Bank of Thailand on THOR-linked green bonds
The transaction was worth USD135 million
Allen & Overy advised Export-Import Bank of Thailand on THOR-linked green bonds
The transaction was worth USD135 million
Allen & Overy has advised the Export-Import Bank (EXIM) of Thailand on the establishment of its medium-term note program and domestic offering of two tranches of green bonds valuing THB5bn (USD135million).
The market-first transaction has set a new standard for Thai Overnight Repurchase Rate (THOR)-linked long-term bonds in the Southeast Asian country.
EXIM's issuance was divided into two tranches:
1) three-year bonds worth THB3bn with a fixed interest rate of 2.25 percent per annum.
2) (ii) four-year bonds worth THB2bn with a floating interest rate of compounded THOR + 0.34 percent per annum.
EXIM Thailand is the first state-owned specialized financial institution in the country to establish a sustainable finance framework. It issued green bonds using THOR as the applicable reference rate. This is in line with the bank's relevant targets and guidelines and market conventions of the Thai Bond Market Association given the upcoming phase-out of the London Interbank Offered Rate (LIBOR).
EXIM operates under the supervision of Thailand's Ministry of Finance and provides financial support and risk protection to the country's exporters, importers, and investors, under the auspices of the Royal Thai Government's strategic development policies.
The Allen & Overy team was led by Bangkok-based counsel Doungporn Prasertsomsuk and associate Pradchayada Maneeratanapron. They were supported by partner Aloysius Tan from Singapore.