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A syndicated Sustainability-Linked Loan for Thai tourism

Home > Case Studies > A syndicated Sustainability-Linked Loan for Thai tourism

Tourism remains a critical source of GDP growth in Thailand, supporting economic and social development. Before the pandemic hit Thailand, tourism contributed to an estimated 21.9 per cent of GDP in 2019, when arrivals peaked at 39.8 million. As tourists return to the nation, Thailand has an opportunity to balance economic growth with a more sustainable stewardship of the environment.

One company investing in such an approach is Minor International Public Co Ltd (MINT).

Founded in 1967, MINT owns, manages and operates a diverse portfolio of over 530 hotels, resorts and branded residences spanning six continents. Its eight brands – including NH Hotels – cover 78,253 rooms. Over time, the company has successfully expanded from an ASEAN-based business, to become a truly global force in travel and lifestyle.

MINT’s growing global presence has generated the need to diversify its funding mix. “Since 2017, Standard Chartered has led various strategic and landmark transactions for MINT, including arranging several underwritten loan facilities and perpetual bonds” explains Chaiyapat Paitoon, Chief Financial Officer of MINT.

The company had to implement numerous measures to protect its balance sheet and mitigate risks in 2020, as it battled with the impacts of the Covid pandemic. But it survived one of the travel industry’s toughest tests to date and, as it resumed its plans for the future, one of MINT’s first priorities was to secure new financing agreements.

thailand financial markets ssl

With several existing loan facilities fast approaching maturity, Standard Chartered and MINT discussed the possibility of a new loan agreement. In September 2023, MINT announced the completion of a €500 million (US$534.3 million) syndicated sustainability-linked loan (SLL) refinancing arrangement. One unique aspect of this, especially for a hospitality player within Thailand, was the sustainability-linked component of the financing arrangement. As Khun Chaiyapat outlines, for a company with a proud commitment to sustainability, the SLL provided the perfect opportunity to underscore its sound environmental principles and make further progress. “We have set targets to reduce carbon emissions intensity and water intensity for Minor Hotels by 15% and 10% respectively by 2025,” Khun Chaiyapat explains. “To achieve these goals, we are actively exploring the implementation of better technologies and improving our operational practices to minimise our environmental impacts,” he notes.

By successfully securing Thailand’s first sustainability-linked loan syndication within the tourism and leisure sector, MINT has demonstrated that it is possible to mitigate environmental impacts while supporting business ambitions. “We see these measures reducing water consumption, energy usage, and carbon emissions, while simultaneously enhancing the overall guest experience,” explains Khun Chaiyapat.He sees two clear benefits for Thailand: “The first is the environmental benefits derived from lower resource consumption and carbon. The second is a positive impact on the country’s financial market and investment environment. It serves as a compelling example of how Thai companies can leverage the rapid growth of sustainable finance, directing it toward climate-related investments to enhance competitiveness and support value creation at scale.”