Thai Union Group Plc has surpassed its 2025 blue finance target after securing a total of 24 billion baht in sustainable financing, underscoring strong investor confidence in its financial stability and long-term sustainability vision.
Blue finance refers to projects that benefit the oceans, support healthy marine and freshwater environments, and help to create a sustainable “blue economy”.
As a large seafood producer, blue finance is part of Thai Union’s corporate strategy.
Thai Union’s latest transaction in September combined Thailand’s first-ever issuance of blue bonds and sustainability-linked bonds (SLBs), worth 9 billion baht in total, alongside a package of sustainability-linked loans (SLLs) worth 10 billion baht.
The offering comprised blue bonds (2 billion baht, four-year tenor, 1.70% interest) and SLBs (2 billion baht, seven-year tenor at 2.20%, and 5 billion baht, 10-year tenor at 2.46%).
In parallel, Thai Union secured 10 billion baht in SLLs from a syndicate of leading banks, with a five-year maturity.
Yongyut Setthawiwat, managing director and group treasurer for treasury and finance shared services at Thai Union, said this fundraising enabled the company to exceed its 2025 goal for sustainability-linked funding sources.
Thai Union also surpassed its target of 75% long-term debt, reaching 80%, and plans to achieve 100% by 2030, he said.
According to the company, proceeds from the blue bonds will be allocated to the purchase of tuna certified by the Marine Stewardship Council or Fishery Improvement Project, in line with Thai Union’s blue and green finance framework.
Meanwhile, proceeds from SLBs will focus on purchasing shrimp certified and benchmarked by the Global Sustainable Seafood Initiative or a credible aquaculture improvement programme.
“We are in phase two of our blue finance strategy focused on aquaculture. These SLBs underscore Thai Union’s sustainability commitment through our ‘SeaChange 2030’ strategy, with key performance indicators emphasising greenhouse gas emissions reduction and responsible shrimp sourcing,” said Mr Yongyut.
He said this year has been challenging for the company, citing a strengthening baht, US tariffs and geopolitical conflicts, yet Thai Union still managed to achieve its blue finance targets, demonstrating market trust in the company’s creditworthiness.
Thai Union previously received a blue loan of 5 billion baht from Asian Development Bank, the first of its kind in Thailand’s seafood sector, aimed at supporting sustainable shrimp production and farmer certification.
The total of 24 billion baht in sustainable refinancing this year exceeded its target.
The financing instruments are linked to Thai Union’s SeaChange 2030 strategy, supporting objectives such as reducing greenhouse gas emissions, advancing responsible and sustainable aquaculture, and funding ocean-focused projects.