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15 Mar 2024

Financial Markets

High costs of green bonds drag down their issuance volume in Thailand (Current Issue No.3470)

คะแนนเฉลี่ย

    • The total outstanding balance of green bonds in Thailand has been growing, but its proportion is still lower than the rest of world. Currently, it only accounts for about 1.0 - 1.7 percent of total Thai debt instruments.
    • The average coupon rate of corporate green bonds in Thailand is lower than vanilla bonds having similar characteristics at 21 bps, in line with “Greenium” seen globally. 
    • 63 percent of green bonds in Thailand will reach their maturity within the next five years, with an average redemption period of 4.7 years, indicating that issuers are still avoiding risk and not ready to invest in long-term environmentally friendly projects.

Financial Markets