GGC and Krungthai forge two-billion-baht sustainability-linked loan
GGC and Krungthai Bank have signed a two-billion-baht sustainability-linked loan deal. This funding is aimed at bolstering GGC’s strategic growth and facilitating investment as well as manufacturing process improvement for emission reduction. The ultimate goal is to achieve net-zero greenhouse gas emissions by 2050, aligning with the company’s sustainable business ethos.
Kridsada Prasertsuko, Managing Director of Global Green Chemicals Public Company Limited (GGC), revealed that on December 19, 2023, GGC signed a sustainability-linked loan (SLL) agreement with Krungthai Bank. Under this agreement, Krungthai Bank will provide a long-term credit facility worth two billion baht to support the company’s strategic growth, investment in manufacturing process improvement for advancing net zero organization initiatives, liquidity management, and ESG commitments. The loan’s key performance indicators (KPIs) are linked to the CDP climate rating and greenhouse gas emission reduction efforts, reinforcing GGC’s dedication to its 2050 net zero goal.
“This partnership with Krungthai Bank is a landmark in our shared journey towards sustainable business practices,” said Kridsada. “It not only aids our business’s strategic growth, investment in manufacturing process improvement for advancing net zero organization initiatives, and liquidity management, but also exemplifies our commitment to sustainability. Krungthai Bank has been a supportive partner, and this collaboration will yield mutual benefits for all stakeholders and contribute positively to the economy and society.”
A leader in the green chemical industry and a pioneer in oleochemical production in Thailand, GGC is committed to becoming a model organization in sustainability. It aims to create a sustainable value chain by opening up new opportunities in the country’s agricultural sector, thereby fostering sustainability in the industrial sector. Furthermore, it adheres to sustainable business practices, creating balances between environmental, social, and governance (ESG) aspects, and demonstrates strong sustainability management.
GGC’s efforts in sustainability have been widely recognized, as evidenced by numerous international certifications, including an A- rating from CDP Climate. Furthermore, the company’s S&P Global sustainability data disclosure this year is a testament to its aspiration to become a globally recognized sustainable enterprise.
Suratun Kongton, Chief Wholesale Banking Officer at Krungthai Bank, highlighted the bank’s commitment to leveraging technology and innovation to meet all customer needs. It prioritizes environmental, social, and governance (ESG) business practices and aligns its operation with the United Nations’ Sustainable Development Goals (SDGs). This sustainability-linked loan deal reflects the commitment and collaboration between two organizations with a shared goal to operate their businesses with responsibility and strive for sustainable growth.
Sustainability-linked loan is a long-term credit facility for R&D investment in green innovation or environmental and social sustainability promotion, linking special interest rates to the company’s sustainability indicators, global sustainability ratings, and greenhouse gas emission reductions. It is, therefore, a financial product that encourages businesses to be aware of sustainable business practices, which would help them reduce operating costs and generate sustainable growth for the businesses themselves and other sectors of society. This reflects the bank’s motto, “Reshaping Client Value Proposition and Promoting Sustainability with Innovation.”
