KBank-Thai Life Insurance-KA to transact ESG-Linked THOR

          KASIKORNBANK (KBank) has teamed with Thai Life Insurance PLC and KASIKORN Asset Management Co., Ltd. (KAsset) in transacting THOR Overnight Index Swaps (THOR OIS) based on ESG performance, or ESG-linked THOR OIS, valued at 1.5 billion Baht. A first-of-its-kind in Thailand with institutional investors.   

          Mr. Thiti Tantikulanan, Capital Markets Business Division Head, KBank, noted, “KBank has been at the forefront in the THOR-linked interest rate swap market since 2020. This time, we have initiated a financial innovation that focuses on financial market development under ESG guidelines as part of our endeavor to encourage doing businesses to achieve the goal of sustainable growth. The issuance of an ESG-linked THOR OIS is intended to support ESG commitment of both KBank and its institutional investor clients, i.e., Thai Life Insurance PLC and KAsset. This deal, worth a total of 1.5 billion Baht, is the first successful deal of its kind in Thailand.  
          The ESG adjustment features allow client to receive additional return through ESG-Linked OIS, provided that certain ESG investment criteria are met. This transaction, therefore, is consistent with KBank’s business operations that are based on the principles of a Bank of Sustainability, with its endeavor to support customers, given that KBank is a pioneer in offering financial products and services that are environmentally friendly and socially responsible under good corporate governance. KBank is ready to be part of such efforts in driving the transition to a balanced and sustainable world to the next generations. Such a transaction is also in line with THOR market development guidelines per the Bank of Thailand’s policy.  
          Mr. Arj Seriniyom, Senior Vice President – Investment Group, Thai Life Insurance PLC, said that this transaction represents a milestone for institutional investors and is in line with Thailand’s investment direction that emphasizes ESG for the development of a sustainable Thai capital market, while also improving the THOR reference rate per the BOT’s guidelines. Thai Life Insurance PLC is honored to be a cornerstone player in steering this important financial innovation towards success.  
          Mr. Suradech Kietthanakorn, Managing Director, Kasikorn Asset Management, adds that KAsset is honored to be part of the success of the ESG-Linked THOR OIS transaction, which will play an important role in the development of the Thai financial market. KAsset is also ready to become a key market participant in the sustainable development of Thailand’s capital market, consistent with our investment philosophy of achieving long-term, superior and sustainable returns for our clients.​​