Global law firm Clifford Chance has advised leading Thai non-bank financial institution (NBFI) Muangthai Capital Public Company Limited (MTC) on its debut issuance of US$335 million senior unsecured social bonds on the Singapore Exchange (SGX).
The offering of 6.875% amortising notes due 2028 represents a number of market firsts, including the first public market social bond from Thailand and MTC as the first ASEAN NBFI to access the US dollar markets. The offering was four times oversubscribed, reflecting strong investor demand.
Lead partner Gareth Deiner said, “Congratulations to Muangthai Capital on this remarkable achievement in the U.S. dollar market and ESG space. MTC’s social bond has set multiple new standards for Thai companies and non-bank financial institutions, particularly against the backdrop of a constructive market. Furthermore, the success of this transaction demonstrates that the global fixed income market is open to growth enterprises in emerging markets with specific ESG objectives at the core of their business.”
Gareth was supported by counsel Claire Neo and Stephanie Liman, associate Joel Sherard and trainee solicitor Christian Hughes. MHM Chandler provided local law advice in Thailand.
The Stock Exchange of Thailand (SET)-listed MTC offers a diverse range of retail secured and unsecured loan products to the financially underbanked through its network of over 8,000 branches. The proceeds of the transaction will be used to support eligible social projects focused on improving financial inclusion, employment generation, and food security and sustainable food systems under MTC’s social bond framework. In particular, the social projects will contribute to the UN Sustainable Development Goals (SDGs) 1 (no poverty), 2 (zero hunger), 5 (gender equality) and 8 (decent work and economic growth).
Clifford Chance is a leading adviser of ESG-focused transactions in the region, including the world’s largest orange bond by Impact Investment Exchange and Indonesia’s first sustainability linked bond by PT Japfa Comfeed.
