BTS Group Holdings Public Company Limited (“The Company” or “BTSG”) successfully issued senior unsecured Sustainability-Linked Bonds (“SLB”) to institutional and/or high-net-worth investors with 1.67 times oversubscription, in which the Company decided to exercise greenshoe option, bringing total issue size to THB 11,000 million. The Bonds were rated ‘A’ by TRIS Rating and the proceeds will be used for debt refinancing. The issuance marked BTSG as the first issuer in Thailand to ever issue both SLB and Green Bonds, emphasizing BTSG’s firm commitment in sustainable business practice and strong position in Thai Capital Market.

Mr. Surayut Thavikulwat, Chief Financial Officer of BTSG announced that “the Company had successfully issued 4 tranches of unsubordinated and unsecured Bonds amounting to THB 11,000 million placed to institutional and/or high-net-worth investors during 29 April, 3 and 5 May 2022. The Bonds received warm responses from investors across all types, with more than 1.67 times oversubscription on BTSG’s initial target issue size of THB 8,000 million. Therefore, BTSG decided to exercise greenshoe option of THB 3,000 million to meet the demand for investors. The Bonds were rated ‘A’ by TRIS Rating Co., Ltd. on 10 March 2022.”

BTSG SLBs No.1/2565 comprised of a 3-year SLB bond with an interest rate of 2.79% p.a. amounting to THB 700 million, a 5-year SLB bond with a fixed interest rate of 3.65% p.a. amounting to THB 2,800 million, a 7-year SLB bond with a fixed interest rate of 4.05% p.a. amounting to THB 3,800 million, and a 10-year SLB bond with a fixed interest rate of 4.40% p.a. amounting to THB 3,700 million. The Bonds were arranged by Bangkok Bank Public Company Limited (“BBL”), Krungthai Bank Public Company Limited (“KTB”), KASIKORNBANK Public Company Limited (“KBANK”) and The Siam Commercial Bank Public Company Limited (“SCB”) as the Joint Lead Arrangers.

Sustainability-Linked Bonds (SLBs) are any types of bond instrument whose financial and/or structural characteristics, such as a bond coupon, can be adjusted depending on the achievement of the predefined sustainability/environmental, social and governance objectives. Issuers are thereby committing explicitly (including in the bond documentation) to future improvements in sustainability outcome(s) within a predefined timeline. Those objectives are (i) measured through predefined Key Performance Indicators (KPIs) and (ii) assessed against predefined Sustainability Performance Targets (SPTs)*.

BTSG has developed a Sustainability-Linked Financing Framework (“Framework”) to enable the issuance of different securities or instruments including bonds, loans, or any other debt instruments (collectively “Sustainability-Linked Finance Instruments” or “SFIs”) whose financial characteristics are linked to whether Key Performance Indicators (“KPIs”) reach predefined Sustainability Performance Targets (“SPTs”), in alignment with the principles including; Sustainability Linked Loan Principles (“SLLP”), May 2021, and Sustainability Linked Bond Principles (“SLBP”), June 2020, International Capital Market Association (“ICMA”).**

KPIs of BTSG are 1) KPI 1: Total electricity consumption per car-km for Green Line Network and 2) KPI 2: Renewable energy consumption in operations for Green Line Network. DNV Business Assurance Australia Pty Ltd. (“DNV”) has reviewed BTSG Sustainability-linked Financing Framework (“SLFF”) and provide a Second Party Opinion (“SPO”) report on the Framework based on the Principles. The Framework and a SPO report are published on BTSG’s website for more details.

Mr. Surayut Thavikulwat also mentioned that, “We would like to thank investors for their trust and interest in subscribing for BTSG Bonds and we would like to also thank Bangkok Bank Public Company Limited (“BBL”), Krungthai Bank Public Company Limited (“KTB”), KASIKORNBANK Public Company Limited (“KBANK”) and The Siam Commercial Bank Public Company Limited (“SCB”), the Lead Arrangers, for their support and contribution to this achievement. The proceeds will be used for debt refinancing. The success of this Sustainability-Linked Bonds offering as well as the previous transactions will support and drive us to continue to offer Bonds to meet investors demand going forward.”

The issuance of BTSG Sustainability-Linked Bonds is in line with the Company’s long-term climate strategy, which includes our goal to remain carbon neutral and increase at least 10% share of energy from renewable sources of total electricity consumption. Our sustainable commitment has been acknowledged through awards and recognitions we received at both national and international external agencies such as being included in the DJSI for the 4 consecutive years (2018-2021) and ranked first globally in the DJSI Transportation and Transportation Infrastructure Sector for 2 consecutive years. We are also honored to be the first and only rail carbon neutral transportation company certified by the Thai Government’s Thailand Greenhouse Gas Management Organisation.”, said Mr. Thavikulwat.