Minor International Public Company Limited (MINT) announced that it has entered into an ESG-Linked Interest Rate Swap transaction with Siam Commercial Bank (SCB). This transaction builds on last year’s successful collaboration of MINT and SCB on Thailand’s first corporate THOR (Thai Overnight Repurchase Rate)-linked swap. MINT’s environmental, social and governance (ESG) performance is used to determine the swap’s interest rate, which has a positive impact on the overall cost of funds.
The ESG performance is based on three criteria: 1. the inclusion in DJSI Indices, 2. Corporate Governance Score by Thai Institute of Directors (IOD), and 3. the ability to reduce the usage of single-use plastic. The move is in line with the international practice where everyone takes part in mitigating climate change and move forward together sustainably.
This year, MINT was included as a constituent of the DJSI Indices, Emerging Markets for the 8th consecutive year. It has also been ranked as “Excellent” CG scoring (5-star) for the 9th consecutive year on CG Report 2021 conducted by the IOD. Over the years, the Company has also reduced the use of single-use plastic categories, replacing some with more eco-friendly materials as well as redesigning packaging to reduce plastic where possible.
Mr. Brian James Delaney, Chief Financial Officer of MINT, commented “Even though the COVID-19 pandemic had a significant impact on our hotel and food operations, we have adapted and maintained our sustainability practices and standards. We believe that a focus on ESG will help strengthen our businesses in the long run and make this world a better place. It is a great delight that SCB has recognized MINT’s continuous commitment and dedication – from the THOR-based swap deals to the ESG-linked interest rate swap this time, which is believed will have a positive impact on the company’s financial costs. MINT is committed to striving to ensure that the company’s ESG performance goals meet SCB’s criteria. The company encourages local business entities to raise their ESG awareness for the sustainability of their own business and stakeholders at large, since this global trend is sure to have increasing influence on doing business in the future. This deal between MINT and SCB illustrates the fact that ESG performance not only benefits society and the environment, but also has a beneficial effect on corporate financial costs.”