BlackRock eyes Thai clean energy and sustainability bonds for investment

Global asset management giant, BlackRock Inc, with a staggering total of US$9.43 trillion worth of assets under its belt, has set its sights on expanding its business horizons in Thailand. The company is particularly interested in investing in the Thai government’s Sustainability Linked Bonds and the country’s clean energy sector, according to a statement by government spokesperson Chai Wacharonke.

The announcement came following a meeting between Larry Fink, CEO of BlackRock Inc., and Prime Minister Srettha Thavisin, who is currently present at the 78th Session of the United Nations General Assembly in New York. The potential investment by BlackRock in Thailand’s bio-circular-green (BCG) sector signifies a significant boost to the country’s economy, providing Thai companies with significant capital to expand.

Chai further elaborated that BlackRock’s areas of interest span clean energy sources like wind and solar power, and garbage recycling. The asset manager is also keen on investing in Small and Medium-sized Enterprises (SMEs) alongside larger businesses.

He highlighted that the BCG model businesses, which demand a highly skilled workforce and reduce the use of natural resources by half, differ from traditional businesses. The Thai BCG sector, currently valued at 3.44 trillion baht, is projected to swell to 4.4 trillion baht within the next year. Over 100 companies promoting the BCG economy could potentially benefit from this development.

The government spokesperson also revealed that BlackRock is keen on investing in Sustainability Linked Bonds, scheduled to be issued by the Thai government next year. Fink further praised the Southeast Asian region as being high-potential, where BlackRock plans to continue investing.

Several of Thailand’s large-scale funds, including the Social Security Fund and Government Pension Fund, are already investing via BlackRock’s Exchange Traded Fund (ETF).

The interest shown by BlackRock in investing in Thailand marks Prime Minister Srettha’s initial success in attracting foreign investors. The Prime Minister plans to further promote Thailand as an ideal investment base for accessing the ASEAN market, a region comprising 600-700 million individuals, during the upcoming meeting with the US-ASEAN Business Council.

During his US visit, the 61 year old prime minister is also scheduled to hold meetings with executives from JP Morgan, Microsoft, Citibank, Estee Lauder, and Tesla, with a key agenda being the promotion of Thailand’s medical care services as a key strength to lure more investors, reported Bangkok Post.

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