Mizuho Bank, Ltd. (President & CEO: Masahiko Kato) has signed a facility agreement with True Corporation Public Company Limited (True Corporation) after being appointed as a mandated arranger for True Corporation’s first-ever sustainability-linked1 cross-border2 syndicated loan.
The facility marks True Corporation’s inaugural entry into the JPY financing market and is also the largest JPY loan and largest sustainability-linked loan completed by a Thai corporation to date. The facility was launched with an initial facility size of JPY109.9 billion. However, following overwhelming support from the Japanese and international banks, the company exercised the greenshoe option to upsize the facility to JPY141.3 billion.
True Corporation is Thailand’s largest mobile operator and the leading integrated telecommunications and digital service provider, and CP Group and Telenor are equal partners in the company with a 30.3% stake each.
True Corporation is recognized as an industry leader in sustainability and has been included in the Dow Jones Sustainability Indices (DJSI). The company is focusing on its commitment to innovating, developing the digital economy and fostering inclusion to improve the quality of life of Thai people for a sustainable future.
True Corporation is committed to providing value-driven products and solutions that respond to the needs of both consumers and enterprises. At the same time, it is making relentless efforts to facilitate Thailand’s digital development by supporting the creation of a local tech eco-system capable of nurturing technology start-ups.
In this sustainability-linked cross-border syndicated loan, True Corporation identifies its KPIs/SPTs, which are related to material issues of its sustainability. Goals of this loan are stipulated as “the reduction of Greenhouse Gas (“GHG”) Scope 1 and 2 emissions” and/or “the increase in solar cell capacity at cell sites”. Interest rate calculations will depend on the degree to which these goals are achieved.
In addition, with the aim of diversifying funding sources and broadening the investor base, with the assistance of Mizuho’s advisory, True Corporation received external credit rating from the Japan Credit Rating Agency, Ltd. (JCR) in April 2024.
At Mizuho, we are working to further incorporate sustainability initiatives into our business strategy. We are drawing on our expertise as a financial services group to proactively provide a wide range of solutions, including advisory and capital financing support, to businesses that are contributing to the shift to a low-carbon society.
Loan overview:
Originated amount: JPY 141.3bn
Arranger: Mizuho Bank, Ltd. and seven other financial institutions worldwide
Lenders: 23 financial institutions worldwide
Notes:
1. A financing structure which links preferential terms, such as lower interest rates, to the achievement of ESG goals established in alignment with the borrower’s sustainability strategy. By providing incentives for the borrower to achieve these goals, this form of financing aims to promote sustainable economic activities and growth.
2. Corporate syndicated loans extended from Japanese banks to non-Japanese or offshore entities and sold mainly to Japanese investors, like in this case, are often called “Ninja loans” or “Samurai loans” in Japan. Mizuho Bank has trademarked the term “Ninja loan” in the United States and other jurisdictions.