Sri Trang Gloves goes green as it debuts the first green bond with success

Sri Trang Gloves (Thailand) PCL or "STGT", one of the world's largest rubber gloves manufacturers, producing mainly for medical use, announced the notable success of the Company's first green bond issuance which received an overwhelming response with 2.39 times oversubscriptions. The successful issuance is in the collaboration with Krungsri (Bank of Ayudhya PCL.).

The green bond issued and offered by STGT is name-registered, senior and unsecured, and with bondholders' representative. It is offered to institutional and/or high-net-worth investors in the total amount of 1,500 million baht, much higher than the original target of 1,000 million baht due to strong interest from the investors.

The issuance of green bond is the first time of the company. The proceeds from bond issuance will be used to invest in or refinance part or all of the new or existing projects which have been initiated not exceeding 2 years before the offering date of the green bond. The environmental projects of the company include: 1) Renewable Energy; 2) Pollution Prevention and Control; 3) Energy Efficiency; 4) Sustainable Water and Wastewater Management; and 5) Clean Transportation.

Each tranche of the green bond was assigned a credit rating of "A" with "Stable" Outlook by TRIS Rating Company Limited on August 8, 2022, reflecting the strong financial position and business performance of the Company. It is divided into 3 tranches: Tranche 1 with a tenure of 3 years at the fixed interest rate of 2.97% per annum totaling 550 million Baht; Tranche 2 with a tenure of 7 years at the fixed interest rate of 3.91% per annum totaling 400 million Baht; and Tranche 3 with a tenure of 10 years at the fixed interest rate of 4.25% per annum totaling 550 million Baht. Interest will be paid every six months with Bank of Ayudhya PCL acting as lead arranger, bondholders' representative and bond registrar.

Miss Thanawan Sa-ngiamsak, Chief Financial Officer, Sri Trang Gloves (Thailand) PCL (STGT) said, "The Company's debut issuance of green bond is successful as we were warmly received by institutional investors such as life insurance companies, asset management companies, banks, and cooperatives, with the subscription amount reaching over 2.39 times of the target. The positive response from investors reflects the investors' confidence in our business as well as their focus on environmental initiatives and business sustainability. The success of our green bond issuance will certainly reinforce our brand promise of "Clean World Clean Gloves" to deliver quality products to customers and care about the environment simultaneously."