Bangkok Bank unveils green transition loan for businesses

The credit can be as high as $283m (THB10b)

Bangkok Bank has launched a green transition loan with a credit of up to THB10b (about $283.8m).

The Bualuang Green Financing for Transition to Environmental Sustainability loan offers a low interest rate and a maximum loan term of eight years, Bangkok Bank said in a press release.

The loan aims to provide financial support for businesses wishing to transition towards environmental sustainability in three aspects: carbon emission reduction, climate transition, and pollution reduction. They are required to have an investment project aimed at enhancing environmental sustainability in one of the three aspects, said Bangkok Bank senior EVP Siridej Aungudomsin. 

The loan is available to large, medium, and small enterprises, including individual business operators and juristic persons registered in Thailand with an establishment in the country, Aungudomsin added.

In its statement, Bangkok Bank noted Thailand’s goal to achieve carbon neutrality by 2050 and net zero greenhouse gas emissions by 2065 as inspirations for its new green loan.

“Although these targets are several decades away, businesses must begin adapting now due to the implementation of the Carbon Border Adjustment Mechanism (CBAM) in the European Union (EU), which will be effective from 2026,” the bank stated.

(US$1 = THB35.24; as of 12 August 2024, 11:08 AM)