Sovereign Sustainability-Linked Bonds

Thailand issued a THB25 billion sustainability-linked bond, with Standard Chartered as the Joint Sustainability Structuring Bank, and drew an order book 1.45 times the original target. The bond is tied to two goals: cutting net greenhouse gas emissions 47% from 2019 levels by 2035, and protecting at least 30% of Thailand's land and water areas by 2030.

The issuance marks the first time an Asian sovereign has included biodiversity targets alongside climate goals in this kind of bond, building on Thailand's inaugural sustainability-linked bond framework launched in 2024. It ranks as the second-largest sovereign bond of its kind in Asia and the fourth-largest globally.

As governments look beyond emissions-only targets, Thailand's bond points to a growing model that combines climate and biodiversity goals to attract a wider base of sustainability-focused investors.