Sri Trang Gloves (Thailand) Public Company Limited (STGT), Thailand’s leading manufacturer and distributor of natural rubber and nitrile gloves and one of the world’s top producers, announced a significant milestone with the successful acquisition of a THB 2 billion Sustainability-Linked Loan (SLL) from Bank of Ayudhya Public Company Limited (BAY). This funding will support the company’s commitment to advancing its business objectives through sustainability strategies that are directly integrated with its financial strategy, driving tangible outcomes. The initiative also reinforces STGT’s efforts to elevate organizational standards to international levels while maintaining its leadership position in the global rubber glove industry.
The five-year Sustainability-Linked Loan is tied to clearly defined and measurable sustainability Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs), in alignment with STGT’s business direction. The loan focuses on two primary objectives (1) reducing greenhouse gas emissions (Scope 1 and Scope 2) per unit of production by 20% by 2030 compared with the 2024 baseline and (2) reducing non-hazardous production waste sent to landfill per unit of production by 50% by 2030 compared with the 2024 baseline. The loan’s interest rate will be adjusted annually based on STGT’s performance against these sustainability targets, representing a genuine integration of sustainability strategy with both operations and financial strategy.
Ms. Jarinya Jirojkul (fourth from left), Chief Executive Officer of Sri Trang Gloves (Thailand) Public Company Limited, stated “For STGT, sustainability is not merely a responsibility to society and the environment, but an opportunity to create long-term value and sustainable business growth. Securing this Sustainability-Linked Loan represents a significant milestone, reflecting our ability to drive business expansion while remaining genuinely committed to environmental and social responsibility. This is in line with our ‘Clean World Clean Gloves’ (CWCG) concept, which underscores STGT’s dedication to producing high-quality rubber gloves that are both safe for users and environmentally friendly. To ensure transparency and build trust in accordance with international standards, STGT has established a Sustainability-Linked Finance Framework referencing the principles of the International Capital Market Association (ICMA), ASEAN Capital Markets Forum (ACMF), and Loan Market Association (LMA). The framework has been independently reviewed by DNV (Thailand) Limited, which issued a Second Party Opinion confirming its alignment with global standards and guidelines.”
Mr. Prakob Phiencharoen (fourth from right), Head of Corporate and Investment Banking Group, Bank of Ayudhya Public Company Limited, stated “Krungsri is truly delighted to support STGT, a Thai organization with a strong commitment to sustainable business practices. This collaboration underscores Krungsri’s role as a leader in delivering financial solutions that genuinely address environmental and social considerations. We aspire for our financial approach to create lasting value for businesses, stakeholders, and Thai society in a truly sustainable way.”
The collaboration between STGT and Krungsri reflects a shared commitment to leveraging financial innovation linked to sustainability strategies as a catalyst for advancing STGT’s business objectives. This partnership aims to foster the company’s long-term sustainable growth by integrating operations with environmental, social, and governance (ESG) considerations, thereby creating positive impacts and delivering lasting value to stakeholders and the world at large.