Baker McKenzie has advised the joint lead managers, comprising Bangkok Bank Public Company Limited, Bank of Ayudhya Public Company Limited, Krung Thai Bank Public Company Limited, and Standard Chartered Bank (Thai) Public Company Limited, on the successful offering of the inaugural issuance of up to THB 30 billion sustainability-linked bonds (SLBs) for the Kingdom of Thailand.

This landmark issuance is the first sovereign SLB issue in Asia and is the first bond series issued under Thailand’s Public Debt Management Office (PDMO) plan to issue THB 130 billion SLBs for fiscal year 2025, which was announced earlier this month. The 15-year bond will link interest rate adjustments to Thailand’s environmental goals, including limiting GHG emissions and increasing electric vehicle adoption by 2030, marking a significant step in Thailand’s commitment to the Paris Agreement and long-term emission reduction targets to achieve its ambition of carbon neutrality by 2050 and net zero emissions by 2065.

The cross-border Baker McKenzie team is led by Partner Kowit Adireksombat (Bangkok) and Principal Ashok Lalwani (Singapore), supported by Senior Associate Sakares Khamwalee.

Kowit commented, “We are proud to have played a role in facilitating this important step towards achieving Thailand’s environmental goals. This first sovereign SLB issuance in Asia marks a significant milestone in sustainable finance, showcasing Thailand leadership in the ESG space. By linking borrowing costs directly to environmental performance, the SLBs serve as a powerful template for ensuring climate commitments translate into measurable action. It also opens up opportunities to demonstrate how financial innovation can accelerate the transition to a low-carbon economy.”

The SLBs align with international standards set by the International Capital Market Association and the ASEAN Capital Markets Forum. Additionally, the SLBs have been verified by a global second-party opinion provider, ensuring compliance with sustainability principles.