Project Details
Project
Kingdom of Thailand Sustainable Financing Framework Second-Party Opinion
Client
Kingdom of Thailand
Project Type
Sustainability Bond/Loan
Industry Group
-
Use of Proceeds
-
Location
Thailand
Evaluation Date
Jul 2020
Evaluation Summary
Sustainalytics is of the opinion that the Kingdom of Thailand Sustainable Financing Framework aligns with the Green Bond Principles 2018 (GBP), Social Bond Principles 2020 (SBP), Green Loan Principles 2020 (GLP), and ASEAN Sustainability Bond Standards 2018 (ASEAN SUS). This assessment is based on the following:
USE OF PROCEEDS
The seven green and three social eligible categories for the use of proceeds are aligned with those recognized by GBP, SBP, GLP and ASEAN SUS. Sustainalytics considers that the eligible categories will facilitate a transition to a low-carbon economy and advance the socioeconomic development in Thailand while advancing the UN Sustainable Development Goals (SDGs), specifically SDG 1, 2, 3, 4, 6, 7,8, 11,14 and 15.
PROJECT EVALUATION/SELECTION
KOT’s internal process in evaluating and selecting projects will be managed by the Committee, which is comprised of representatives from Public Debt Management Office, Budget Bureau, Office of the National Economic and Social Development Council, State Enterprise Policy Office, Office of Natural Resources and Environmental Policy and Planning, The Securities and Exchange Commission, and Thai Bond Market Association. The Committee will monitor eligibility and impact of projects until full allocation. This process is in line with market practice.
MANAGEMENT OF PROCEEDS
The Committee will manage the net proceeds using the government treasury reserve account of the Kingdom of Thailand. The net proceeds will be tracked by a register (the “Register”), including information on the issued financial instrument and relevant details. Pending full allocation, unallocated proceeds will be invested in temporary liquid instruments, such as cash and cash equivalents, in accordance with the Comptroller General’s Department’s policy. This process is in line with market practice.
REPORTING
KOT intends to report on the allocation and impact of the proceeds annually on the Sustainable Financing section of the PDMO’s website until full allocation. In its allocation reporting, KOT will report on (i) the percentage of an amount equal to the net proceeds allocated to eligible projects, (ii) the percentage of financing and refinancing of projects, and (iii) a breakdown of allocated amounts to eligible categories and the relevant Ministries in charge of the projects financed. Also, KOT commits to reporting on relevant impact metrics. This process is in line with market practice.