With the Thai government accelerating its net-zero emissions target, local businesses are now positioned to gain competitive advantage by embracing sustainable practices. Transitioning to greener operations not only aligns with global market expectations but also opens access to new financing, partnerships, and innovation-driven growth.
Pisal Kattiyothaivong, head of investment banking (IB) at UOB Thailand, said the bank has long supported Thai businesses in their transition to sustainability, in line with government policy and international standards.
The bank's IB division also plays a pivotal role within financial services in supporting clients' efforts to achieve their sustainability goals.
In September, the new government led by Prime Minister Anutin Charnvirakul announced a policy to accelerate Thailand's net-zero target by 15 years -- moving the goal from 2065 to 2050.
Mr Pisal said the clarified timeline will incentivise well-prepared businesses to accelerate their decarbonisation efforts.
He added that the bank stands ready to serve as a long-term partner for clients throughout this transition, while also extending support to those with limited capabilities.
He said large local corporations are typically the most prepared segment for this transition. The bank expects these companies to adapt effectively to the government's newly announced policy.
"Large Thai corporates have been actively integrating sustainability into their business operations since 2018 and have begun raising funds through green loans and green bonds," said Mr Pisal.
In recent years, demand for such financial products has continued to grow in line with global trends, evolving international standards, more government support and rising awareness among the business community. Financial institutions have likewise developed innovative products and programmes to meet clients' changing requirements.
Regarding its IB business, Mr Pisal said UOB Thailand provides a wide range of financial and advisory services, particularly focusing on new fundraising through loan and bond and merger and acquisitions advisory.
Sustainability-linked loans (SLLs) and sustainability-linked bonds (SLBs) play a central role in promoting a sustainable economy in Thailand. The bank also provides a variety of financial tools and solutions designed to drive the country's overall transition towards sustainability.
FUNDING THE TRANSITION
Driven by strong demand from large local corporate clients for green, environmental, social and governance (ESG), and sustainability-linked financial products, UOB Thailand has continued to expand its sustainability-linked finance portfolio.
In particular, SLBs and other ESG bonds are expected to play a pivotal role in growing the bank's business, in line with the positive trend in overall bond issuance, Mr Pisal said.
According to the Thai Bond Market Association (ThaiBMA), the global outstanding value of ESG bonds reached US$5.7 trillion in 2024. Meanwhile, global ESG bond issuance totalled US$1.05 trillion last year, up 11% from US$947 billion the previous year.
Two-thirds of total issuance comprised green bonds, followed by sustainability bonds, social bonds and SLBs. Thailand's government also issued an SLB worth 30 billion baht, becoming the first government in ASEAN to do so.
As a bond underwriter, UOB Thailand has demonstrated strong performance in this segment. In August 2024, the bank assisted the leading retail developer Central Pattana Plc (CPN) in creating a sustainability-linked finance framework with technical support from Asian Development Bank.
CPN became the first company in Thailand's real estate and retail sectors to issue SLBs, with a total value of 8 billion baht (UOB Thailand served as the Sole Lead Arranger). The bond was later recognised by the ThaiBMA as the "Corporate ESG Bond of the Year".
In addition, Mr Pisal said the bank supported Thaifoods Group Plc, a mid-sized corporation and one of the country's leading chicken and pig producers, in launching its first social bond worth 1 billion baht in 2021 -- the first social bond issued by a non-financial corporation under the ASEAN Social Bond Standards.
UOB Thailand has continued to strengthen its role in promoting sustainable finance, supporting a wide range of corporates in issuing ESG bonds in the Thai capital market. Beyond its work with the two flagship issuers, the bank has assisted several companies in bringing ESG-labelled instruments to market, underscoring its growing influence in Thailand's sustainable debt space.
The bank's contribution has been recognised by the Thai Bond Market Association (ThaiBMA), which named UOB Thailand a 2024 Top Underwriter for Corporate ESG Bonds. The accolade adds to a series of honours the bank has received from regional and international organisations, including The Asset, FinanceAsia, Asian Banking & Finance, and Alpha Southeast Asia, for its achievements in ESG bond underwriting and sustainable finance.
In addition to its capital markets activities, UOB Thailand has been active in the sustainable lending segment. The bank arranged several ESG-linked facilities, notably serving as deal coordinator, green loan coordinator and mandated lead arranger for the green loan provided to GSA Data Center 01. These efforts reflect UOB Thailand's broader strategy of supporting Thailand's transition towards a low-carbon economy and advancing sustainable development across key industries.
SUPPORTING SMEs
For small businesses, sustainability isn't just about meeting regulations -- it's about staying competitive in a changing market.
In addition to large corporations, UOB Thailand also focuses on helping small and medium-sized enterprises (SMEs) in their sustainable transition.
"With the relatively lower readiness of this business segment, the bank's ESG Solutions has introduced knowledge programmes and innovative tools to help Thai SMEs upgrade and transition towards more sustainable business models" he said.
A key initiative is the UOB Sustainability Compass, an online tool designed to help local businesses and especially SMEs enhance their access to sustainability resources.
The platform provides an online report that helps businesses assess their level of sustainability readiness and offers practical guidelines for progressing towards more sustainable operations, including key considerations such as relevant regulations and compliance requirements.
The finale services and tools underscore UOB Thailand's strong commitment to supporting Thai businesses in all segmentations transiting towards sustainability.
As well, the bank's broader ambition to help drive the Thai economy towards a more comprehensive ESG ecosystem, ensuring that Thai businesses are better equipped to meet emerging sustainability standards and long-term growth objectives.
