TMB BANK Plc , which recently issued Thailand’s first green bonds, aims to lead the way in sustainable banking by doing business in a way that supports its customers as well as social development, environment protection and the uplifting of banking service standards, TMB Chief Executive Officer Piti Tantakasem has said.
“Banks often think that to operate, having a business licence from the central bank is enough when in fact the licence to operate really comes from the public. Our belief at TMB is that an organisation must do the right thing to be sustainable,” Piti said.
To ensure social acceptance, the bank’s sustainability framework must cover all core areas: its organisation, industry, environment and society, he said. In term of environmental protection, TMB has started green lending some time ago and expects the support it recently received from the International Finance Corporation (IFC), the private sector lending arm of the World Bank, will allow it to expand its green lending portfolio and further encourage awareness in Thailand.
“The green bond issue, the first of its kind by a Thai commercial bank, underscores our commitment at TMB to drive business by implementing a sustainable business framework,” Piti said. “This also promotes private sector investment in renewable energy projects and energy efficiency, thereby helping to reduce global warming, beneficial to both the environment and the economy as a whole.”
The US$60 million (Bt1.85 billion) green bonds issued in June was entirely subscribed by the IFC. Green lending portfolio TMB’s green lending portfolio currently stands at Bt8.5 billion ($280 million) and is expected to increase to Bt15 billion ($470) within the next 5 years.
TMB also carries out community development for sustainability projects where employees work closely with communities around Thailand to promote quality of life. During the past three years, more than 100 communities have benefited from these projects. Piti was invited to address the inaugural Bangkok Sustainable Banking Forum, which the Bank of Thailand held recently.
“A number of welcoming developments are taking place in our financial sector. But, much more can be done and need to be done to foster an ecosystem that promotes overall sustainability,” Veerathai Santiprabhob, governor of the Bank of Thailand told the forum in his opening speech.
Source The Nation