The Securities and Exchange Commission (SEC) of Thailand will soon allow small and medium-sized enterprises (SMEs) and start-ups to issue and offer sustainability debt securities through crowdfunding and private placement channels.
The Capital Market Supervisory Board approved the new measure, SEC secretary-general Ruenwadee Suwanmongkol says, to allow SMEs and start-ups to participate in sustainable development.
Under the new rules, SMEs and start-ups can offer sustainability bonds via private placement to no more than 10 investors per issuance.
As well, the SEC will allow a crowdfunding system to open opportunities for businesses of all sizes, including SMEs and start-ups.
Fundraising through sustainability bonds has totalled some 492 billion baht (US$14.9 billion) as of December 2022, according to SEC data, however, the majority came from large companies.
The SEC believes sustainability is central to the strategy and business operations of businesses “of all types and sizes”, Ruenwadee adds, hence, the decision to push SMEs and start-ups towards sustainability and making their business operations more sustainable.