Krungsri teams up with food manufacturers to launch green FX program

Customers who achieve predefined ESG targets can get reduced costs.

Krungsri (Bank of Ayudhya PCL) has partnered with Thai Union Group and i-Tail Corporation to introduce the ESG-Link Foreign Exchange (FX) program.

Under the program, customers who reach pre-defined environmental, social, and governance (ESG) targets– such as reducing carbon emissions or improving social responsibility metrics— can get benefits on their FX transactions, such as reduced costs for hedging.

Thai Union Group is a producer of seafood products, whilst i-Tail Corporation is a pet food manufacturer.

Krungsri will integrate key performance indicators (KPIs) and sustainability performance targets (SPTs) from its sustainability-linked financing framework into FX hedging.

This integration is expected to enable more effective currency exposure management by incorporating sustainability factors into the financial strategies, whilst also potentially reducing FX transaction costs, Krungsri said.