Chandler MHM Advises on the First Sustainability-linked Bond Issued by an Asian Shipping Company

Chandler MHM advised United Overseas Bank (Thai) Public Company Limited in its capacity as sole lead arranger on the issuance of sustainability-linked bonds by Precious Shipping Public Company Limited (PSL), which is one of the world’s largest pure dry cargo shipping businesses.

This groundbreaking transaction, which is the first sustainability-linked bond issued by an Asian shipping company, is guaranteed by the Credit Guarantee & Investment Facility (CGIF), a trust fund established by the Asian Development Bank (ADB). The proceeds from this bond issuance will be used for capital expenditure or business expansion related to PSL’s shipping business. The KPI of PSL’s sustainability-linked bonds focuses on reducing CO2 emissions relative to the transport work performed by its business activities.

PSL’s sustainability-linked bonds are issued in two tranches with tenors of 5 years and 10 years, respectively,  each in the amount of THB 680 million. The 10-year bonds carry a special feature of a call option.

The team from Chandler MHM was led by Doungporn Prasertsomsuk, supported by Poonpha Moosirilert, Pradchayada Maneeratanapron, Onpreeya Kitcharoen, and Praewa Silapunt.

Doungporn Prasertsomsuk, Partner, commented, "We are honored to have advised on the first sustainability-linked bond issued by an Asian shipping company. We hope that this will be a model for both the shipping industry and other energy-intensive industries for raising finance while committing to CO2 emission reductions.”

Doungporn Prasertsomsuk is recognized as a leader in the Thai market for debt capital markets and is ranked top-tier by independent global legal publications.