Krungthai Bank and IRPC have agreed to collaborate on an ESG-Linked FX Total Solutions Program, through which Krungthai will use its innovations in foreign exchange hedging to efficiently enhance IRPC's financial management and support the company in achieving its sustainability goals.
Phichin Aphiwantanaporn, Senior Executive Vice President of Corporate Accounting & Finance, IPRC Public Company Limited, underscored IRPC's emphasis on financial risk management and risk hedging as well as its commitment to operating its business in alignment with sustainable development approaches. IRPC Group has established its sustainability strategies and Sustainability Management Excellence Framework as a practical guideline in line with international standards, placing particular emphasis on business operations that create societal and environmental balances. This time, the company has adopted and applied sustainable business approaches to its foreign exchange hedging policy by entering into the ESG-Linked FX Total Solutions Program with Krungthai Bank to ensure the appropriateness and efficiency of the company's foreign exchange hedging operations Moreover, achieving the set ESG targets will result in lower foreign exchange hedging costs. This program demonstrates IRPC's integration of ESG principles into its risk management and supports its path to sustainable growth.
Rawin Boonyanusasna, Head of Global Markets Group at Krungthai Bank, said that Krungthai Bank is committed to developing financial innovations in alignment with sustainable development principles to address customer needs and support them in reaching their environmental, social, and governance (ESG) targets. Recently, Krungthai Bank has collaborated with IRPC Public Company Limited to integrate financial instruments by initiating an ESG-Linked FX Total Solutions Program. In this program, the bank will offer advice and support IRPC in engaging in foreign exchange risk hedging transactions, including FX forwards and cross-currency swaps, to address IRPC's income, expenditure, and balance sheet hedging needs. This program also uses ESG performance criteria for reducing transaction costs.
"This development is considered the first ESG-led collaboration in the form of a total solutions program, taking Thailand's financial innovation to another level. It leverages the strengths of both organizations to develop efficient, comprehensive financial solutions that drive sustainable growth while caring for the environment and society. This is in line with the United Nations' Sustainable Development Goals and fortifies the bank's position as a leading provider of innovative sustainable finance solutions, as reflected in the bank's guiding theme of Reshaping Client Value Proposition and Promoting Sustainability with Innovation," said Rawin.