The Thai bank has provided a THB/USD swap to hedge the entire coupon of a THB6 billion (US$183.7m) digital corporate bond early this month with the interest rate subject to each party’s sustainability index.

The five-year bond, which was issued by state-owned PTT Exploration and Production (PTTEP) on 2 November, is also Asia’s first fully digitalised corporate bond via wallet, according to Krungthai Bank (KTB). The product has a step-up interest rate from two percent to 2.75% pa averaging 2.25% pa. This translates to an average interest of THB135m per year, or THB675m in total. The interest will be paid every six months.  The ESG-linked derivative comes in to help the client manage the

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