CIMB THAI SUBORDINATED GREEN NOTES (GREEN BOND) 2024
PROGRESS REPORT 2024/25
CIMB THAI SUBORDINATED GREEN NOTES (GREEN BOND) 2024 - PROGRESS REPORT 2024/25
Introduction
CIMB Thai Bank Public Company Limited (CIMBT) is member of CIMB Group, one of ASEAN's leading banking groups. Established in 1998 through the consolidation of 14 institutions in the aftermath of the Asian Financial Crisis, CIMB Thai has been majority-owned by CIMB Group since 2009 and now delivers a full suite of consumer and wholesale banking as well as treasury and markets services across the country. The bank is listed on the Stock Exchange of Thailand and operates nationwide to serve Thai corporates and households alike.
At Group level, CIMB launched "Forward30" on 5 March 2025-its six-year roadmap to 2030-to accelerate growth and "future-proof" the organization. Forward30 is anchored on four levers-the "4Cs": Capital (optimize & reallocate), Cash (build a leading deposit franchise to lower funding costs), Cross-sell (unlock value via a one-bank approach), and Capabilities (deliver simpler, better, faster propositions). Group's Forward30 targets frame CIMB Thai's operating tempo, client focus and productivity agenda for the next six years.
Sustainability is a core strategic pillar. CIMB is a Founding Signatory of the UN Principles for Responsible Banking (PRB), and the first ASEAN bank to join the Net-Zero Banking Alliance (NZBA). The Group has committed to net-zero financed emissions by 2050 and net-zero operations by 2030, underpinned by sector-level pathways-including stringent coal policies that prohibit financing new greenfield coal mines and coal-fired power plant expansions, target a 50% reduction in thermal-coal exposure by 2030, and full exit by 2040. In July 2025 CIMB also raised its Sustainable Finance target to RM300 billion by 2030, signaling scaled capital mobilization toward low-carbon, inclusive growth.
CIMB Thai translates these Group commitments into local action. In 2024 the bank published its inaugural TCFD report with NGFS-based scenario analysis and disclosed financed emissions across five asset classes using PCAF, reinforcing transparency on climate impacts, risk and opportunity (IRO). It has actively supported Thailand's Taxonomy development - contributing to Phase 1 and 2 work streams, and has stood up a comprehensive Sustainable Finance policy architecture that embeds sustainability due diligence and clear eligibility logic across Green, Social, Sustainability and Impact Products & Services (GSSIPS). On the product side, CIMB Thai established a suit of Sustainability-Linked Financing and Capital-raising solutions and is rolling out sustainability-linked derivatives to help clients manage financial and sustainability KPIs in tandem. The bank has also announced a THB 20 billion "committed demand" by customers in hard-to-abate sectors such as power and oil & gas-moving activities from "brown" to "less-brown" in line with scientific pathways.
This progress report sits within that broader trajectory. In October 2024 CIMB Thai issued THB 2,000 million in subordinated green bonds-the first subordinated green bond recognized as Tier 2 capital in Thailand-mobilizing proceeds for renewable and other taxonomy-aligned environmental projects under a framework backed by an independent second-party opinion.
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CIMB THAI SUBORDINATED GREEN NOTES (GREEN BOND) 2024 - PROGRESS REPORT 2024/25
CIMB Thai Sustainability Bond Framework
The CIMBT Sustainability Bond Framework (2023) provides guidance on key components of the Sustainability Bond, including the use of proceeds and the process for project evaluation and selection. CIMB Thai is committed to ensuring our instruments and frameworks reflect the Group's latest sustainability commitments, evolving market standards, investor requirements, and regulatory expectations. To this end, we have established CIMB Thai's Sustainability Bond Framework to finance sustainable projects with environmental and social objectives while providing transparency and disclosure to the sustainability bond market.
The Framework adheres to principles and guidelines issued by the International Capital Markets Association (ICMA), including the Green Bond Principles (GBP), Social Bond Principles (SBP), and Sustainability Bond Guidelines (SBG). It also aligns with standards issued by the ASEAN Capital Markets Forum (ACMF), including the ASEAN Green Bond Standards (ASEAN GBS), ASEAN Social Bond Standards (ASEAN SBS), and ASEAN Sustainability Bond Standards (ASEAN SUS).
The four core components of the Sustainability Bond Framework are aligned with the GBP, SBP, and SBG:
Use of Proceeds
Process for Project Evaluation and Selection
Management of Proceeds
Reporting
The proceeds of each Green, Social or Sustainability Bond ("Proceeds"), or an equivalent amount, will be exclusively used to finance or refinance, in whole or in part, new or existing assets, investments, projects, and/or products (collectively, "Eligible Assets") that comply with CIMBT Sustainability Bond Framework. Eligible Assets include the Bank's own operating or capital expenditures, provided that operating expenditures were disbursed within 36 months prior to the relevant Green, Social or Sustainability Bond's issue date. The Proceeds may be used to subscribe to financial instruments issued by the Bank, where the proceeds from such instruments are used to finance or refinance Eligible Assets. The Proceeds may also be used to finance companies that derive at least 90 percent of their revenue from Eligible Assets. In such cases, the companies may use the Proceeds for general purposes, including capital and operating expenses, provided this financing does not fund expansion into activities outside the scope of Eligible Assets.
Eligible Assets for Green Bonds, Debentures, or Notes, include:
Renewable and clean energy
Clean transportation
Green buildings
Sustainable water and wastewater management
The Eligible Assets under this Sustainability Bond Framework align with the Thailand Taxonomy. The Thailand Taxonomy employs a traffic light system to classify activities based on Technical Screening Criteria, as well as Do No Significant Harm (DNSH) and Minimum Social Safeguard (MSS) requirements.
CIMBT Management Committee ("MC") holds the ultimate responsibility and accountability for the Sustainability Bond Framework, including approval of proposed assets and specific definitions of Eligible Assets under the Sustainability Bond Framework. The MC is supported by the CIMBT Sustainability Team in carrying out its duties.
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CIMB THAI SUBORDINATED GREEN NOTES (GREEN BOND) 2024 - PROGRESS REPORT 2024/25
CIMB Thai has obtained a second-party opinion from DNV to validate the alignment of our Sustainability Bond Framework with the ICMA's GBP, SBP, SBG, as well as the ACMF's ASEAN GBS, ASEAN SBS, and ASEAN SUS.
The CIMBT Sustainability Bond Framework and the Second-Party Opinion Certificate can be downloadable from: https://www.cimbthai.com/en/personal/who-we-are/sustainability/sustainability.html
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