Thai Times

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Sunday, Mar 30, 2025

EXIM Thailand Recognized for Innovative Blue Bond Initiative

EXIM Thailand Recognized for Innovative Blue Bond Initiative

First-ever Thai baht-denominated Blue Bond facilitates marine conservation financing.
The Export-Import Bank of Thailand (EXIM Thailand) has been awarded the Best Blue Bond – Thailand Award at the Asset Triple A Awards for Sustainable Finance 2025. This recognition highlights EXIM Thailand's issuance of the first Thai baht-denominated Blue Bond by a Thai financial institution, valued at 3,000 million baht and launched in June 2024. The bond’s proceeds are dedicated to supporting enterprises focused on the preservation of marine and coastal resources, emphasizing EXIM Thailand's commitment to sustainability and its role as a Green Development Bank.

This initiative aligns with Thailand’s economic, social, and environmental objectives aimed at fostering a low-carbon society.

In an effort to rejuvenate the automotive sector, which has experienced significant declines in both production and sales, the Thai government is implementing a loan guarantee scheme specifically for pickup trucks.

This initiative is intended to boost sales by approximately 6,250 units amidst a challenging economic backdrop where automobile production fell to a four-year low last year.

As Southeast Asia's largest automotive manufacturer, Thailand's auto exports have decreased by 8.8%, with domestic sales plummeting 26% amid tight credit conditions and high household debt.

The government has allocated a 5 billion baht (US$147.80 million) support package to enhance loan availability for this key segment of the market, which traditionally accounts for one-third of domestic auto sales.

Deputy Finance Minister Paopoom Rojanasakul stated that this program is expected to increase lending availability and reduce financial risks for institutions, thereby positively impacting the industry.

The initiative encompasses a loan guarantee program for small and medium-sized enterprises (SMEs) purchasing new pickups for various business purposes, including agriculture and transportation.

Loan guarantees can cover up to 1.5 million baht per vehicle and will facilitate a smoother lending process for SMEs seeking to expand or modernize their transportation resources.

Furthermore, Gulf Development Plc, a new conglomerate resulting from the merger of Gulf Energy Development Plc and Intouch Holdings Plc, has announced a substantial investment plan totaling 100 billion baht over the next five years.

This budget is designated for integrating energy and telecommunications operations, as well as establishing data centers, with an emphasis on clean energy solutions.

Sarath Ratanavadi, chief executive of Gulf, noted that the majority of the investment will focus on enhancing power generation capacity and supporting digital technology initiatives.

To mitigate the effects of brain drain, Thailand has introduced a new tax incentive program targeting expatriates.

This program aims to attract skilled Thai nationals returning from abroad, offering a 50% exemption on salary expenses for employers in certain sectors, such as technology and advanced manufacturing.

The initiative runs until December 31, 2029, and is tailored to enhance the country’s industrial capabilities and foster innovation.
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