Thailand Issues Asia-Pacific’s First Nature-Linked Sovereign Bond with ADB Support

The Government of Thailand has issued the Asia and Pacific region's first sovereign sustainability-linked bond that incorporates a nature-related indicator, the Asian Development Bank (ADB) announced on 2 October 2026. The 15-year bond, issued on 17 September, raised 25 billion baht (approximately $750 million) after attracting subscriptions 2.8 times higher than the planned 15 billion baht issuance.

According to the ADB, proceeds from the bond will support two primary sustainability targets aligned with Thailand's national priorities and international commitments. The first goal aims to keep the country's net greenhouse gas emissions below 152 metric tons of carbon dioxide equivalent by 2035, marking a 47% reduction from 2019 levels. The second objective targets the conservation and management of at least 30% of Thailand's total terrestrial and inland water protected areas and other effective area-based conservation measures by 2030.

The issuance builds upon Thailand's inaugural sustainability-linked bond in 2024 by introducing a nature-related key performance indicator alongside more ambitious environmental targets.

ADB Country Director for Thailand Aaron Batten stated that the transaction demonstrates how capital markets can assist in delivering mitigation and biodiversity outcomes, noting that it aligns with the ADB's broader commitment to mobilize $30 billion through capital markets by 2030.

The ADB assisted the Thai government by helping select indicators, facilitating partner coordination, and reviewing the bond framework to ensure alignment with international standards. This assistance was delivered through the Green Social Sustainability and Other-labeled (GSS+) Finance Initiative—a collaboration between the ASEAN Catalytic Green Finance Facility and the Asian Bond Markets Initiative—alongside the ADB-led Nature Solutions Finance Hub.

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