Siam Commercial Bank (SCB) and Thaioil Public Company Limited have announced a groundbreaking collaboration to advance sustainability in Thailand through two innovative financial products: Sustainability Linked Swaps and Sustainable Deposits. This marks the first instance of integrating interest rate risk management with sustainable deposit products. These financial transactions not only enhance financial cost management for the Thaioil Group, but also align with sustainable business practices under the ESG (Environment, Society, and Governance) framework, ensuring long-term returns.
This partnership underscores Thaioil's leadership in Thailand's largest refined petroleum product refining and distribution sector and its commitment to transforming its business to seize new opportunities aligned with global trends. This initiative supports Thaioil's vision of "Creating Quality of Life with Sustainable Energy and Chemicals," which complements SCB's mission to foster sustainable business and economic growth alongside environmental conservation. The collaboration was jointly announced by Mr. Patrick Poulier, Executive Vice President & Head of the Financial Markets Function at SCB, and Mrs. Chanamas Sasnanand, Executive Vice President-Finance and Accounting at Thaioil.
Sustainability Linked Swaps are an interest rate risk management tool offered by SCB that reference sustainability performance. Meanwhile, Sustainable Deposits are multi-currency deposit accounts, available in Thai baht, US dollars, and Euros. The funds from these deposits will be used to support projects aimed at reducing environmental impacts and promoting sustainable resource growth.