Mitr Phol and Krungthai sign sustainability-linked loan deal worth two billion baht, pushing towards net zero and carbon neutrality goals

Mitr Phol and Krungthai sign sustainability-linked loan deal worth two billion baht, pushing towards net zero and carbon neutrality goals

Verajet Vongkusolkit, Chief Executive Officer of Thai Sugar, Energy and New Business Group, and Suratun Kongton, Chief Wholesale Banking Officer at Krungthai Bank, have signed a sustainability-linked loan (SLL) agreement worth two billion baht at Krungthai Bank’s headquarters. This marks a significant step in their journey towards carbon neutrality and achieving net zero emissions.

Verajet Vongkusolkit, Chief Executive Officer of Thai Sugar, Energy and New Business Group, stated that Mitr Phol Group, recognized as Thailand’s largest and the world’s third-largest sugar producer, is committed to promoting environmental and ecological balance alongside sustainable growth. This commitment is demonstrated through clear, challenging goals and tangible execution. As a result of emphasizing sustainable development in economic, social, and environmental areas as well as efficient resource use, Mitr Phol Group was ranked second in the S&P Global Sustainability Awards in the food product industry in 2023. Aligning with the Science Based Targets initiative (SBTi), the group aims for carbon neutrality by 2030 and net zero emissions by 2050, surpassing Thailand’s 2065 net zero emissions goal. In addition, the group has joined the Thailand Voluntary Emission Reduction Program (T-VER). Having around 800,000 tonnes CO2-eq in certified carbon credits per year, Mitr Phol is a leading carbon credit provider in Thailand, with further plans to reduce greenhouse gas emissions. This support from Krungthai Bank will be valuable to Mitr Phol’s endeavor to achieve its sustainability goals.

Suratun Kongton, Chief Wholesale Banking Officer at Krungthai Bank, highlighted the bank’s dedication to developing financial products and services that meet all customer needs while addressing environmental, social, and governance issues, advancing the sustainability of the Thai economy. Reflecting its commitment to reshaping client value propositions and promoting sustainability by employing innovation, the bank has recently issued a sustainability-linked loan with a credit line of two billion baht. This loan aligns with responsible lending guidelines and supports organizations that adhere to sustainable development and endeavor to attain carbon neutrality and Thailand’s net zero emissions goal.

Krungthai Bank strives to be a partner that is trusted by its customers and prioritizes ESG business practices, and it has developed sustainability-linked loans (SLL) as an option for customers. The bank firmly believes in Mitr Phol’s strong financial and business performances, as well as its being an ESG leader in Thailand and internationally.

This loan agreement marks a significant milestone in the bank’s contribution to Mitr Phol’s sustainability endeavors. The loan can be used for investment and R&D in green innovations, business expansion, and working capital, according to the group’s policy. It has clear targets linked to the company’s ESG metrics that will be used throughout the agreement term, and it will support Mitr Phol in becoming a carbon neutral and net zero emissions organization, aligning with the country’s low carbon society ambitions.

This collaboration signifies the shared ESG mission between the two organizations. It also reflects Krungthai Bank’s commitment to sustainable banking, alignment with the United Nations’ Sustainable Development Goal 13: Climate Action, and effort to drive sustainable growth for both the bank and the country, as outlined in its vision of ‘Growing Together for Sustainability.’