Krungsri announces its readiness to be a trusted partner for sustainable growth
synergizing with MUFG to continuously grow the ESG market
Krungsri (Bank of Ayudhya PCL) reveals directions of the Corporate and Investment Banking Group in 2022 with the main focus to become a trusted partner to business customers, generate continual growth for the sustainable finance market, spearhead the development of financial technologies and innovations as well as the ESG knowledge, and introduce “Total Financing & Hedging Solution” to create added value for business customers through the collaborations of MUFG and the differentiation of consulting service which will help customers to get ready for business resurgence and expand the business opportunity with financial products and services that specifically meet the needs of customers in each sector. At the same time, Krungsri has been enhancing the business potential of customers in accordance with the 2021-2023 Medium-Term Business Plan (MTBP).
Mr. Prakob Phiencharoen, Krungsri Head of Corporate and Investment Banking Group, revealed “Over the past year, the Corporate and Investment Banking Group registered more than 413,000 million Baht of total outstanding loans. In particular, total loans of business customers continued to rise by 13% from the preceding year. Krungsri has maintained its leadership in ESG finance market by continuously participating in the launch of sustainability-linked financial products, such as the Sustainability-Linked Bonds (SLB) issued by Thai Union Group PCL which Krungsri was appointed as the sole arranger for the offering and the sustainability debentures issued by Bangkok Expressway and Metro PCL, which won the prestigious accolades from The Asset, to name just a few. Krungsri was trusted by SCGP to be their sustainability coordinator for their Sustainability-Linked Loan (SLL). Besides, Krungsri has been the first bank that initiated collaborations with strategic partners to promote the implementation of Thai Overnight Repurchase Rate (THOR) interest reference rate. It entered into the largest ever long-term loan facility agreement using THOR as reference rate with PTT PCL and partnered with Next Capital PCL to launch Thailand’s first THOR interest reference rate for long-term loan deals. The moves were seen as major drivers supporting the Bank of Thailand’s policy of developing the Thai financial markets. Krungsri has also been successful in acting as the selling agent for the IPO of the ordinary shares of Ngern Tid Lor PCL (TIDLOR). The shares were overwhelmingly subscribed through the Bank and Krungsri Securities PCL (KSS) and were subscribed via the online platform of Krungsri Mobile Application (KMA) for the first time.
Mr. Prakob added, “For the business direction in 2022, we will strive to achieve the loan growth target of 2% and continue the growth of ESG finance with financial products that promote sustainable business. We will also continue to share the knowledge on ESG Financing in the global financial markets in collaboration with MUFG, in order to promote ESG finance market in Thailand. Our advisory service stands out with the teams of relationship managers that stemmed from synergy in Krungsri. The Corporate and Investment Banking Group remains committed to become a trusted partner for sustainable growth through the following 3 strategies:
Value Creation: We aim to offer comprehensive products and services including business solutions under the concept of “Total Financing & Hedging Solution” while join forces with MUFG to help our customers expand their business domestically and globally and build on the development of the ESG Finance market in which Krungsri has distinguished strength and expertise. Krungsri’sdirections and products such as Sustainability Loan, Sustainability Bond and ESG debentures, including credit facility that promoted environmentally friendly business such as Solar Roof relating to social and sustainable finance are ready to support the business customers.
Asset Quality: We will provide customers with ongoing assistance in order to drive business resurgence from the post-COVID period onwards and help them expand their business to sustain solid growth in the long-term.
Value Chain & Digitalization: We will continue to accelerate the adoption of advanced technologies to enhance financial services in order to stay ahead of the rapidly changing customer behaviors, and move forward to upgrade operational efficiency of the organization through the use of innovations and technologies which will lead to the improvement of organizational potential and customer experience.”
“In 2022, we will concentrate on leveraging the expertise and knowledge of MUFG to empower our business by placing emphasis on building strong teamwork with powerful customer insights, offering proper solutions to fit customers’ needs, and gearing toward supporting ESG-related business in an effort to deliver products and services that contribute to a sustainable growth opportunity for our customers,” Mr. Prakob concluded.
