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Green Finance / Treasury & Capital Markets
SCB, IRPC ink pact on sustainability-linked forwards
Initiative aims to mitigate FX risks, enhance cost management and foster sustainable development
Tom King 8 Jul 2024

Thailand’s Siam Commercial Bank (SCB) and petrochemical company IRPC have signed a memorandum of understanding for cooperation on sustainability-linked forward contracts.

The contracts are designed to mitigate exchange rate risks and foster sustainable development through innovative financial derivatives.

The costs are tied to the company’s performance in environmental, social, and governance (ESG) criteria aligned with sustainable organizational development.

According to Stock Exchange of Thailand-listed IRPC, the initiative underlines the company’s commitment to good corporate governance and the integration of renewable, clean energy into business operations to achieve sustainability objectives.

While aligning with IRPC’s sustainable development goals, the agreement also supports hedging against exchange rate risk and enhance cost management.

Patrick Poulier, executive vice president and head of financial markets function at Siam Commercial Bank, says the Bangkok-headquartered bank is committed to fostering a sustainable society. It aims to achieve net-zero emissions from its internal operations by 2030 and from its lending and investment activities by 2050.

“The bank is enthusiastic about supporting IRPC in its goals to grow responsibly while caring for society, communities, and the environment, and to achieve net-zero greenhouse gas emissions. This commitment is embodied in the sustainability-linked forward contracts, which align financial cost management with ESG performance,” Poulier says.

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