Thaioil takes up sustainable deposits, linked swaps with SCB

Funds from deposits will support projects that reduce environmental impact.

Siam Commercial Bank (SCB) has partnered with Thaioil Public Company for two green-linked financial products: the sustainability linked swaps and sustainable deposits.

Thaioil is Thailand’s largest refined petroleum product refiner and distributor.

SCB, Thailand’s oldest bank, will integrate interest rate risk management with sustainable deposit products, reportedly a first in Thailand, according to a joint press release by SCB and Thaioil.

Sustainability linked swaps are an interest rate risk management tool offered by SCB that reference sustainability performance. 

Meanwhile, sustainable deposits are multi-currency deposit accounts, available in Thai baht, US dollars, and Euros. 

The funds from these deposits will be used to support projects aimed at reducing environmental impacts and promoting sustainable resource growth,the press release said.

The financial transactions are expected to not only enhance the financial cost management for the Thaioil Group, but also align the group to sustainable business practices under an environment, society, and governance (ESG) framework.

Patrick Poulier, SCB’s executive VP and head of the financial markets function, and Chanamas Sasnanand, executive VP-Finance and Accounting at Thaioil, jointly announced the collaboration.