The Public Debt Management Office (PDMO) has successfully issued the first social bond by a Thai state enterprise, raising 1,000 million baht to finance sustainable development. Ms. Jindarat Wiriya-thaveekul, Director of the PDMO, announced that the office arranged a loan for the Office of Neighboring Countries Economic Development Cooperation (ONEDC) through this issuance. The Social Bond carries a principal amount of 1,000 million baht, a 10-year maturity, and a fixed interest rate of 3.13% per annum.
The bond was offered to a select group of no more than 10 institutional investors, with the Government Savings Bank serving as the underwriter. This issuance represents a significant first for a Thai state enterprise, marking a successful debut in the Social Bond market and aligning with the PDMO’s commitment to promoting sustainable finance and the United Nations’ Sustainable Development Goals (SDGs). The framework for this bond issuance adheres to international standards, with guidance from the Asian Development Bank (ADB) and an independent evaluation by DNV (Thailand).
The funds raised will be allocated to restructuring debt for two crucial infrastructure projects located in Laos: the R11 Road Development Project and the Thailand-Laos Friendship Bridge No. 5, which connects Bueng Kan and Bolikhamxay. ONEDC previously secured a corporate credit rating of “AAA” with a “Stable” outlook from TRIS Rating on June 18, 2026. This rating highlights ONEDC’s strong connection to the Thai government and its pivotal role in advancing economic connectivity policies with neighboring nations.
The successful social bond issuance also signals a growing appetite among institutional investors for sustainable environmental, social, and governance (ESG) investments. This trend mirrors the broader market for government sustainable bonds, which have reached a cumulative value of approximately 700 billion baht and are listed on the Luxembourg Stock Exchange.
Mr. Kiattichai Welawan, Deputy Director of ONEDC, described the social bond issuance as a landmark achievement for the organization, being the first state enterprise to successfully place a Social Bond. He emphasized that this success reflects the confidence and backing from institutional investors and underscores the importance of supporting projects that yield economic and social benefits. This aligns directly with ONEDC’s core mission of leveraging financial instruments to foster economic and social growth and achieve sustainable development in collaboration with neighboring countries.