True Corporation Public Company Limited (TRUE), Thailand’s leading telecom-tech company and a global leader in sustainability, has successfully closed its maiden sustainability-linked syndicated loan totalling JPY141.3 billion for refinancing or repayment of existing debt, making it the first telecom-tech company in Thailand to secure a sustainability-linked syndicated loan.
The loan is True Corporation’s inaugural entry into the Japanese yen financing market and is both the largest Japanese yen loan and largest sustainability-linked loan completed by a Thai corporation to date. The loan was launched with an initial size of JPY109.9 billion. Following keen interest from Japanese and international banks, the company exercised the Greenshoe option to upsize the loan to JPY141.3 billion.
True Corporation has become the first telecom-tech company in Thailand to secure a sustainability-linked syndicated loan, marking a significant milestone in the journey towards enhanced sustainability. The loan aligns financial management and cost-reduction strategies with clear environmental and social objectives, reinforcing a commitment to responsible business practices and long-term sustainability. It is tied to two key performance indicators (i) reducing Greenhouse Gas (GHG) Scope 1 and 2 emissions, and (ii) increasing solar cell capacity at cell sites. This highlights True Corporation’s dedication to achieving carbon neutrality (Scope 1 & 2) by 2030 and net-zero emissions by 2050, in line with the Science-Based Target Initiative (SBTi) guidelines.
True Corporation’s adoption of sustainability-linked financing reflects the company’s strong commitment to environmental, social and governance goals. In 2023, True Corporation achieved the highest score out of 166 companies in the telecommunications industry in the S&P Global Corporate Sustainability Assessment and was listed in the DJSI indices for the sixth consecutive year. This sustainability-linked loan is therefore part of the company’s longstanding commitments towards increasing its use of renewable energy and adopting cutting-edge technologies, such as artificial intelligence, to reduce its energy consumption.
Ms. Yupa Leewongcharoen, Chief Financial Officer (Co) of True Corporation Plc., stated: “We are pleased to have secured our maiden Japanese Yen sustainability-linked loan with overwhelming interest, marking a significant milestone for True Corporation. This initiative will diversify and expand our investor base, reduce financial risk, and enhance our financial flexibility with favourable terms. Additionally, it supports our climate action goals and reinforces our position as the world’s most sustainable telecom company.True Corporation has laid out a roadmap to become a sustainable telco-tech leader, focusing on achieving sustainable profitability and value through enhanced customer experiences, growth, and synergies. We are confident that this year will be a transformative one for profitable growth, while 2025 will be the year of sustainable profitability and value creation for our customers, the industry, the markets, and the entire country. This sustainable growth stems from synergy realization, disciplined cost control, leveraging technology to enhance services for maximum customer satisfaction, and prioritizing superior network quality.”
True Corporation mandated Bank of China (Hong Kong) Limited, BNP Paribas (acting through its Singapore Branch), DBS Bank Ltd, Mizuho Bank, Ltd., Natixis, Singapore Branch, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank (Singapore) Limited and Sumitomo Mitsui Banking Corporation as the mandated lead arrangers and bookrunners. Mizuho Bank, Ltd. acted as sole JCR rating coordinator and Sumitomo Mitsui Banking Corporation acted as the sole sustainability coordinator.
