Bangchak teams up with KASIKORNBANK

Editorial Staff

Bangchak teams up with KASIKORNBANK to sign a pioneering carbon credit linked FX forward Contract.

Bangchak Corporation Plc is taking a proactive step to promote carbon credit transactions in conjunction with KASIKORNBANK. This marks a significant milestone as Thailand’s first carbon credit linked FX forward contract.

Phatpuree Chinkulkitnivat, senior executive vice president, accounting and finance, Bangchak Corporation Plc stated “Bangchak is committed to sustainable innovative business development. Entering into the carbon credit linked FX forward contract with KASIKORNBANK, a founding member of carbon markets club along with Bangchak, is another achievement in the collaborative effort to drive the carbon credit trading market.

This transaction will not only broaden the reach of carbon credit trading, but also serves as a catalyst for various sectors in the mission to reduce greenhouse gases, fostering new financial innovations in the Thai financial market.”

Thiti Tantikulanan, capital markets business division head, KASIKORNBANK Plc said that KASIKORNBANK or KBank has been providing ESG-linked Hedging Instruments since 2021, in alignment with a principle of a bank of sustainability.

In this instance, the bank moved a step further with our financial innovation to support participation in the greenhouse gas reduction activities through the successful launch of Thailand’s first “carbon credit linked FX forward contract.

Such contract stipulates that when the customer engages in qualified carbon credit activities, the contracted exchange rate will be executed. This reaffirms the bank’s commitment to continue launching innovative financial product to demonstrate our position as a leader of the treasury and capital markets business in the country.

KBank stands ready to enhance the liquidity of Thai carbon credit market which help increase public awareness of carbon credits related transactions, with the intended outcome of stimulating greenhouse gas reduction and driving Thailand towards Net Zero in a sustainable manner.

Bangchak had implemented greenhouse gas management and reduction measures by setting the BCP 316 NET plan. It aims to achieve the goal of Net Zero GHG Emissions by 2050, through greenhouse gas reductions from efficiency and process improvement, nature-based carbon sequestration, business transition towards clean energy and greenovative businesses.