ThaiBev launches inaugural Sustainability-Linked Loan, reinforcing ThaiBev’s commitment to "Enabling Sustainable Growth" strategy - Siam Outlook


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Tuesday, March 26, 2024

ThaiBev launches inaugural Sustainability-Linked Loan, reinforcing ThaiBev’s commitment to "Enabling Sustainable Growth" strategy

• KPIs/SPTs are aligned with ThaiBev’s sustainability strategy and 2030 environmental target.

• ThaiBev appoints Krungsri and MUFG as the Joint Sustainability Structuring Advisor to set up the Sustainability-Linked Finance Framework and ensure alignment with Sustainability-Linked Loan Principles.

BANGKOK – March 27, 2024 – Thai Beverage Public Company Limited (ThaiBev), Thailand's largest and Southeast Asia's leading beverage producer and distributor, has successfully completed THB 10 billion Sustainability-Linked Loan (SLL) with Bank of Ayudhya Public Company Limited (Krungsri), the first SLL for a local beverage company in Thailand, Southeast Asia and Asia Ex Japan, signifying ThaiBev’s ongoing commitment to sustainability. Krungsri and MUFG acted as the Joint Sustainability Structuring Advisor.

The transaction exemplifies ThaiBev’s dedication to incorporating sustainability into its daily operations and financing strategy, aligning with ThaiBev’s "Enabling Sustainable Growth" strategy. The SLL is tied to two Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs), focusing on ThaiBev’s environmental commitments to 1) reduce scope 1 and 2 GHG emissions to 50% by 2030 from a 2019 baseline, and 2) increase power consumption from renewable energy sources to 50% of total energy consumption by 2030 from a 2022 baseline. Achieving the SPTs will result in lower interest rate for ThaiBev.

Morningstar Sustainalytics was appointed the provider of Second-Party Opinion Report on the KPIs and SPTs and confirmed the alignment of ThaiBev’s Sustainability-Linked Finance Framework to the Sustainability-Linked Loan Principles.

Tongjai Thanachanan, Executive Vice President and Chief of Sustainability and Strategy of ThaiBev said, “As a beverage and food leader in the ASEAN region, all of us at ThaiBev are conscious that industry leadership is not only about ensuring our Group’s business resilience and operational excellence, but also about protecting the environment, supporting local communities, and enhancing governance. Under the environmental pillar, ThaiBev have pledged to achieve Net-Zero emissions from our operations (Scope 1) and purchased energy use (Scope 2) by 2040. Our 2030 environmental target serves as key performance indicators for the inaugural SLL, affirming the unwavering dedication to sustainability. ThaiBev is pleased to receive strong support from Krungsri on this significant milestone.”

Prakob Phiencharoen, Head of Corporate and Investment Banking Group of Bank of Ayudhya Public Company Limited said, “Krungsri is very pleased to continue its support for ThaiBev with the Sustainability-Linked Loan. This underscores ThaiBev’s dedication to a sustainable growth strategy through clear Key Performance Indicators and Sustainability Performance Targets. The transaction aligns with Krungsri’s sustainable development direction and reaffirms our readiness to pave the way for Sustainable Finance. Krungsri and MUFG are dedicated to synergizing efforts, supporting our clients to start building ESG Pathways to incorporate into their business plans, which presents a strategic opportunity for businesses aiming to adapt and thrive in a rapid changing world.”

Colin Chen, Managing Director and Head of ESG Finance APAC, MUFG Bank, Ltd. said, “MUFG is very excited to partner with Krungsri for ThaiBev’s inaugural sustainable finance facility. We have been following ThaiBev’s strategy towards Net Zero and integrated their commitments in their financing program. We look forward to the continuing partnership with Krungsri and ThaiBev.”

Greg Thong, Director, Sustainalytics Corporate Solutions of Morningstar Sustainalytics said, “We are very pleased to be supporting ThaiBev on its first Sustainability-Linked Finance Framework Second Party Opinion. Morningstar Sustainalytics considers that the ThaiBev Sustainability-Linked Finance Framework aligns with the five core components of the Sustainability-Linked Loan Principles, the KPIs meaningful and relevant in the context of ThaiBev’s broader sustainability and business strategy and the prospective achievement of the SPTs to be impactful. In addition, Morningstar Sustainalytics considers the reporting and verification commitments to be aligned with the Sustainability-Linked Loan Principles.”


Thai Beverage Public Company Limited (“ThaiBev” or the “Group”) is Southeast Asia’s leading beverage producer and distributor, and the largest in Thailand. ThaiBev’s vision is to be “a Stable and Sustainable ASEAN Leader in the beverage and food business.” Headquartered in Bangkok, Thailand, ThaiBev features four main business groups: spirits, beer, non-alcoholic beverages, and food. ThaiBev was listed on the Singapore Exchange Mainboard in 2006 and is currently one of the Exchange’s top 10 companies by market capitalization.

In 2012, ThaiBev expanded beyond Thailand through the acquisition of Fraser and Neave Limited (“F&N”), a well-established conglomerate with a portfolio of highly recognized beverage brands. In 2017, we further strengthened our regional presence by acquiring stakes in Grand Royal Group (“GRG”), the largest whisky player in Myanmar, and in Saigon Beer-Alcohol-Beverage Corporation (“SABECO”), a leading beer producer in Vietnam. The SABECO acquisition enabled ThaiBev to become the largest beer player by volume in Southeast Asia.

ThaiBev is present in over 90 countries, including a network of 26 breweries in Vietnam that produces SABECO’s flagship beer brands Bia Saigon and 333; 1 distillery and 1 non-alcoholic beverage factory in Vietnam; 5 production facilities in Scotland which produce single malt scotch whiskies such as Balblair, Old Pulteney, and Speyburn; 1 production facility of Larsen Cognac in France; 1 distillery in New Zealand that produces Cardrona’s New World single malts; 2 production facilities in Myanmar under GRG; and 1 distillery in China which produces Yulinquan Chinese spirits.

The Company’s well-known spirits brands include Ruang Khao, Hong Thong, Blend 285, SangSom, and Mekhong, as well as GRG’s iconic Grand Royal whisky. Chang, the Group’s signature beer, is one of the most recognizable Thai beers locally and internationally, while SABECO’s Bia Saigon and 333 are Vietnam’s top-selling beer brands. ThaiBev’s leading non-alcoholic beverage brands include Oishi green tea, est cola, and Crystal drinking water, as well as F&N’s sparkling drinks and 100PLUS isotonic drink. The Company also operates Japanese restaurants, as well as ready-to-cook and ready-to-eat food businesses, through its subsidiary Oishi Group Public Company Limited. ThaiBev is accelerating the expansion of its food business by leveraging its subsidiary Food of Asia and its franchise outlets under KFC, the most popular quick service restaurant brand in Thailand.

ThaiBev honors the first royal command of His Majesty King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua to “continue, maintain and extend for the benefit and happiness of the people” and the Sufficiency Economy Philosophy (SEP) of His Late Majesty King Bhumibol Adulyadej the Great as our guiding principles, along with the 17 United Nations Sustainable Development Goals.


Krungsri (Bank of Ayudhya Public Company Limited and its group companies) is the fifth largest financial group in Thailand in terms of assets, loans, and deposits, and one of Thailand’s six Domestic Systemically Important Banks (D-SIBs) with 78 years of history in the country. Krungsri is a strategic member of the Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organizations. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to individual consumers, SMEs, and large corporations through 590 domestic branches (550 Banking Branches and 40 Auto Business Branches) and over 32,379 service outlets nationwide. The Krungsri Group is the largest card issuer in Thailand with 10.2 million credit cards, sales finance, and personal loan accounts in its portfolio; a major automobile financing service provider (Krungsri Auto); one of the fastest growing asset management companies (Krungsri Asset Management); and a pioneer in microfinance (Ngern Tid Lor).

Krungsri is strongly committed to the highest level of integrity in conducting its business. All Krungsri Group companies have been awarded accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC) in collaboration with industry peers and stakeholders on a zero tolerance approach to corruption.


Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,000 locations in more than 50 markets. The Group has about 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.

MUFG Bank, Ltd. is Japan’s premier bank, with a global network spanning more than 50 markets. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide.

In Asia Pacific, MUFG has presence across Australia, Bangladesh, Cambodia, China, Hong Kong, Indonesia, India, South Korea, Laos, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

It has also formed strategic partnerships with some of the most prominent banks in South-east Asia, further augmenting its unrivalled network across the region – VietinBank in Vietnam, Krungsri in Thailand, Security Bank in the Philippines and Bank Danamon in Indonesia.

For more information about our Asia Pacific network, click here.


Morningstar Sustainalytics, a Morningstar Company, is a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies. For more than 30 years, the firm has been at the forefront of developing high-quality, innovative solutions to meet the evolving needs of global investors. Today, Morningstar Sustainalytics works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes. Morningstar Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices and capital projects. With 17 offices globally, Morningstar Sustainalytics includes more than 500 analysts with varied multidisciplinary expertise across more than 40 industry groups.

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