With specific targets for greenhouse gas (GHG) emission reduction and zero emission vehicles (ZEVs), Thailand became the first sovereign in Asia to issue a sustainability-linked bond (SLB), raising THB30 billion ($890 million).

The bond revolves around two key performance indicators (KPIs). The first is to achieve total GHG emissions, excluding removals from land use, land use change and forestry, of 388.5 million tonnes by 2030, which would represent a 30% reduction from the current business as usual scenario.

The second is to increase annual registrations of ZEV passenger cars and pick-up trucks by 476% by 2030, which is the equivalent of 440,000 passenger cars and pick-up trucks. Both these KPIs will be assessed at the end of 2030.

If Thailand fails to meet either of the goals, the bond's interest rate will increase by 2.5 basis points per unmet target. Conversely, if the goals are achieved, the rate will be reduced by 2.5 basis points per target met.