Thai Union Successfully Launches New THB 6-Billion Sustainability-Linked Bond in Thailand

BANGKOK – November 11, 2021Thai Union Group PCL. (Thai Union), the world’s leading seafood processor, has successfully issued dual-tranche senior and unsecured Sustainability-Linked Bonds (SLB) totalling THB 6 billion to institutional investors.

The 5-year tranche of THB 4.5 billion was priced at 2.27 percent and the 10-year tranche of THB 1.5 billion was priced at 3.36 percent. This transaction reinforces the Company’s sustainability commitment and its support in helping develop sustainable capital markets in Thailand following its issuance of the first ever SLB in Thailand in July. Bank of Ayudhya Public Company Limited (Krungsri) is the Sole bookrunner and Sole arranger for this SLB offering.

This second Thai Union SLB represents Thai Union’s continued embrace of sustainable business practices, and is another significant step forward for Blue Finance—financing for projects benefiting oceans—and the seafood industry as a whole. Thai Union was recently ranked number one on the Seafood Stewardship Index (SSI) for the second consecutive time for its performance delivering against the United Nations Sustainable Development Goals (UN SDGs).

TRIS Rating Co., Ltd. assigned this latest issue a rating of “A+” with a “Positive” outlook on November 4, 2021, demonstrating Thai Union’s credit strength and strong financial position as one of the world’s leading seafood processors.

This offering also continues to build on the momentum following the success of Thai Union and Thailand’s first SLB in July this year, and contains the same structure of step-up and/or step-down facilities related to the achievement of Sustainability Performance Targets (SPTs) under Thai Union’s Sustainability-Linked Financing Framework, where Sustainalytics is the Second Party Opinion, the external organization providing assessment on the Company’s Sustainability-Linked Financing Framework. Under this structure, the interest rate payable is adjusted up or down based on whether the Company achieves its agreed targets.

“Thai Union is committed to continuing to lead on the sustainability front under our global sustainability strategy, SeaChange®,” said Thiraphong Chansiri, President & CEO of Thai Union. “We are delighted to return to the Thai Baht bond market, which has provided great support to us and our sustainable development mission, and to further support the global move towards Sustainable Finance and Thai regulators who have issued regulations to support private Thai companies in Sustainable Finance.”

Chansiri said the dual tranche transaction provided Thai Union with an opportunity to engage new investors with different 5- and 10-year maturities, and allowed the Company to build on the reference benchmark SLB curve constructed by both 5- and 10- year for this issuance, and the 7- year that was issued in July 2021.

“The offering garnered strong demand of more than THB 10 billion, or over 2 times the offered amount, reflecting investors’ confidence in Thai Union’s strong business profile, financial performance, and continued sustainability commitment. We are also glad to see new investors, especially leading Asset Management companies in Thailand, participating in this transaction, in addition to government related funds and life insurance companies” Chansiri said.

Seiichiro Akita, President and Chief Executive Officer of Krungsri (Bank of Ayudhya PCL) said “As the business partner and financial advisor, Krungsri would like to congratulate the latest success of Thai Union in its issuance of the new series of the sustainability-linked bond. Thai Union has earned its place among the leading companies with a strong commitment to the sustainability journey. Moreover, such success reflects Krungsri’s determination to advance in sustainable banking and its focus on promoting and facilitating sustainable finance initiatives in all dimensions. This marks another milestone of Krungsri on its roadmap to be the best-in-class financial institution with high experience and expertise in the offering of sustainable financial products. The Bank aims to further progress and continue its contribution for Thailand to thrive on the facet of sustainability.”

Alisara Mahasandana, Assistant Governor, Financial Markets Operations Group, Bank of Thailand (BOT), said, “The issuance of Sustainability-Linked Bond reiterates the vision of Thai Union in committing to sustainability outcomes. Additionally, Krungsri and Thai Union also take the opportunity in the THOR Overnight Index Swap (THOR OIS) market to convert the cost of Sustainability-Linked Bond from fixed rate to floating rate referencing THOR which results in an effective funding cost management. The BOT, therefore, would like to express our appreciation to Krungsri and Thai Union for the continuous cooperation in promoting the widespread use of THOR and developing the funding instruments aiming for the sustainability achievement.”


About Thai Union Group

Thai Union Group PCL is the world’s seafood leader, bringing high quality, healthy, tasty and innovative seafood products to customers across the world for more than 40 years.

Today, Thai Union is regarded as one of the world’s leading seafood producers and is one of the largest producers of shelf-stable tuna products with annual sales exceeding THB 132.4 billion (US$ 4.2 billion) and a global workforce of more than 44,000 people who are dedicated to pioneering sustainable, innovative seafood products.

The company’s global brand portfolio includes market-leading international brands such as Chicken of the Sea, John West, Petit Navire, Parmentier, Mareblu, King Oscar, and Rügen Fisch, Thai-leading brands SEALECT, Fisho, Qfresh, Monori, Bellotta and Marvo, and ingredient and supplement brands UniQ™BONE, UniQ™DHA and ZEAvita.

As a company committed to innovation and globally responsible behavior, Thai Union is proud to be a member of the United Nations Global Compact, and a founding member of the International Seafood Sustainability Foundation (ISSF). In 2015, Thai Union introduced its SeaChange® sustainability strategy. Find out more at seachangesustainability.org. Thai Union’s on-going work on sustainability issues was recognized when the company was listed on the Dow Jones Sustainability Indices (DJSI) for the seventh consecutive year in 2020, and ranked number two in the world on the Food Products Industry Index. Thai Union was also named to the FTSE4Good Emerging Index for the fifth straight year in 2020.

About Krungsri

Krungsri (Bank of Ayudhya PCL and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s six Domestic Systemically Important Banks (D-SIBs) with 76 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 652 domestic branches (613 Banking Branches and 39 Auto Business Branches) and over 32,532 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 9.6 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).

Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.