Thai banks ramp up green loan offerings

Thailand’s six domestic systemically important banks (D-SIBs) have continued to expand their sustainable lending portfolios, with some institutions raising their financing targets to support the transition towards a net-zero economy.

The six D-SIBs — Bangkok Bank (BBL), Krungthai Bank (KTB), Kasikornbank (KBank), Siam Commercial Bank (SCB) under SCB X, Bank of Ayudhya (Krungsri), and TMBThanachart Bank (ttb) — have collectively increased financing for renewable energy, green infrastructure, environmentally-friendly businesses and sustainable consumer products, according to their latest sustainability reports.

BBL broadens financing

BBL, Thailand’s largest lender by total assets, has continued to expand its sustainable finance portfolio through its Bualuang Green Financing for Transition to Environmental Sustainability programme.

According to the bank’s 2025 sustainability report, BBL recorded 19.5 billion baht in transition financing during the year.

The programme is available to all customer segments and is designed to support a smooth and timely transition to a low-carbon economy.

In addition to providing green and transition loans, the bank helps clients to strengthen climate resilience through advisory and knowledge-sharing initiatives.

For corporate clients, BBL’s outstanding environmental loans tallied 139 billion baht last year, while sustainability-linked loan balances totalled 6.8 billion baht.

The bank offers five sustainability-focused loan products for corporate customers: renewable energy loans, environmentally-friendly transition loans, energy and environmental conservation loans, electric mass transit system loans, and environmentally-friendly real estate loans.

For small and medium-sized enterprises (SMEs), BBL expanded its sustainable loan portfolio to 3.89 billion baht last year. Key products include loans for solar panel installation, green financing for a sustainable transition, employment promotion loans, loans supporting environmentally-friendly activities, and the Bualuang Transformation Loan.

BBL also expanded sustainable lending to retail customers, with outstanding balances reaching 112 billion baht.

The portfolio is driven by its green loan programme, which supports environmentally-friendly housing improvements, rooftop solar installations, electric vehicle (EV) charging stations, and accessibility upgrades for elderly and disabled residents.

KBank Lending

KBank also reported significant progress in sustainable lending, with outstanding environmental, social and governance (ESG) loans totalling 117 billion baht in 2025.

The bank’s portfolio comprises 52.8 billion baht in sustainable loans and mortgages for retail customers, 40.4 billion in green, social and sustainable loans for corporate customers, 18.8 billion in sustainability-linked loans for wholesale businesses, and 5.05 billion in ESG financing for SMEs.

Between 2022 and 2025, KBank’s cumulative sustainable financing and investment portfolio expanded to 199 billion baht. The bank committed to achieving net-zero emissions in its own operations by 2030.

KBank aims to drive an inclusive transition across the economy and aspires to become a leading provider of climate solutions, according to its report.

“The bank focuses on delivering essential knowledge and tools alongside financial support for customers across all segments to guide their decarbonisation journeys and enhance sustainable competitiveness in a low-carbon economy,” noted the report.

Krungsri ambitions

Among Thailand’s major lenders, Krungsri took an aggressive step by increasing its social and sustainable finance (SSF) target.

Initially targeting 250 billion baht in SSF financing by 2030 from a 2021 baseline, the bank raised the goal to 350 billion baht in early 2026, reflecting growing demand for sustainable investment and financing solutions.

At the end of 2025, Krungsri’s SSF portfolio tallied 256 billion baht.

The bank finances renewable energy businesses, including solar, wind, hydropower, biogas, biomass, and waste-to-energy projects, with total outstanding loans of 10.4 billion baht.

Of this renewable energy portfolio, solar power accounted for the largest share at 42.9%, followed by hydropower at 34.2%, biomass 16.7%, wind power 5.01%, biogas 0.70%, and waste-to-energy projects 0.40%.

In addition, Krungsri wants to develop a transition plan to mitigate environmental and climate-related risks within its loan portfolio, particularly in industries with high greenhouse gas (GHG) emissions and significant exposure to the bank’s lending portfolio.

The initiative includes calculating financed emissions and developing a transition plan for at least one carbon-intensive industry or a significant sector within the bank’s portfolio.

The plan and its findings were submitted to regulatory authorities last year.

Krungsri focused on the power generation and land transport sectors in 2025, with the initial phase analysing the bank’s power-generation portfolio and calculating financed emissions in accordance with international standards.

SCB and sustainability

SCB X, the holding company of SCB, reported the bank’s cumulative sustainable finance portfolio between 2023-2025 tallied 223 billion baht across all customer segments.

In 2025, the bank provided sustainable loans worth 78.7 billion baht to 35 corporate clients. Financing for SMEs totalled 404 million baht across 59 businesses, while 39 retail customers received sustainable loans worth 313 million baht.

SCB integrates ESG considerations into its loan approval process, as well as the development and delivery of financial products and services.

The bank offers green loans to support environmentally-friendly projects and initiatives, including renewable energy, EVs and energy-efficient buildings.

In addition, SCB provides sustainability-linked loans with preferential interest rates tied to specific sustainability performance targets.

These targets are measured through client-defined key performance indicators, such as external sustainability ratings relevant to the client’s business, improvements in energy efficiency, reductions in GHG emissions, and water conservation.

ESG-focused financing

Ttb also expanded its sustainable financing activities, particularly in support of green transport and SME transitions.

In 2025, sustainable finance accounted for 12% of total corporate lending, comprising 12 billion baht in green and blue loans and 30.3 billion in SME-tailored financing, out of a total credit limit of 99.9 billion baht.

The bank also provided loans totalling 14.7 billion baht to retail customers for the purchase of EVs, representing 16.5% of its consumer auto finance portfolio of 89 billion baht.

In addition, ttb supported auto dealers in the distribution of EVs through floor plan financing amounting to 28.8 billion baht.

“To support businesses and individuals in their transition towards sustainability, ttb offers a comprehensive suite of ESG-focused financial solutions, integrated with advisory services to help clients effectively navigate ESG-related risks and opportunities,” noted the bank’s 2025 sustainability report.

These solutions include green and blue loans that support climate change mitigation, low-carbon transitions, environmental conservation, and sustainable water management projects, as well as sustainability-linked loans that incentivise improvements in ESG performance.

KTB framework

KTB developed a range of sustainable financial products and services, including sustainable loans, green loans and sustainability-linked loans.

Through the sustainable loan programme, the bank supports entrepreneurs and SMEs engaged in green businesses or environmentally-focused activities.

The green loan programme is designed for entrepreneurs and projects seeking to transition towards more environmentally sustainable operations, with objectives including reducing GHG emissions, adapting to climate change, and preventing and controlling pollution.

The bank’s sustainability-linked loans incorporate performance targets to encourage businesses to improve their ESG performance.

Gaining momentum

The growing commitment by Thailand’s leading banks highlights the increasing role of the financial sector in driving the country’s low-carbon transition.

As regulators, investors and customers place greater emphasis on climate action and sustainable development, banks are expanding financing solutions that support renewable energy, cleaner transport, resource efficiency and climate resilience.

With several institutions already surpassing earlier targets and setting more ambitious goals, sustainable finance is emerging as a growth area for Thailand’s banking industry and a critical tool in supporting the nation’s long-term net-zero aspirations.

Source – Bangkok News