The Asian Development Bank (ADB) and Thai Union Group Public Company Limited (Thai Union) have signed a $150 million blue financing agreement to enhance the sustainability of shrimp production in Thailand.
Blue finance investments focus on the sustainable use and preservation of the world’s water resources, including its oceans, rivers, and marine ecosystems.
The financing package, led by ADB as the mandated lead arranger and bookrunner, comprises $50 million from ADB’s ordinary capital resources and a $100 million syndicated B Loan from Bank of China (Hong Kong) Limited, HSBC, MUFG Bank Ltd (Singapore), Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation (Singapore), and United Overseas Bank Limited. This syndication demonstrates ADB’s catalytic impact in mobilizing much-needed financial resources from private sources for the sustainable shrimp value chain. Thai Union works with farmers to improve farming practices, boosting their farms’ resilience to diseases and climatic conditions such as heat waves.
The financing will contribute to Thai Union’s working capital requirements for procurement, processing, and exports of sustainable shrimp and support operating expenses for extension services such as training, certification support, research and development, and sustainability pilot projects. The financing is accompanied by a technical assistance grant, which will train shrimp farmers on resilience and functional financial literacy.
Shrimp is considered sustainable when certified under an accreditation recognized by the Global Sustainable Seafood Initiative, such as Aquaculture Stewardship Council or Best Aquaculture Practices, or sourced from a credible Aquaculture Improvement Project. Globally, only 11.5% of shrimp were certified under Aquaculture Stewardship Council or Best Aquaculture Practices accreditations in 2023.
“Aquaculture supplies over half of the world’s seafood and production is concentrated in Asia,” said ADB Country Director for Thailand Anouj Mehta. “However, the sector is exposed to risks including pollution and increased pressure on overfishing and deforestation due to rising demand for aquafeed. This transaction is ADB’s first private sector loan for the agribusiness sector in Thailand and aims to improve the sustainability and resilience of the shrimp supply chain.”
The blue loan developed under Thai Union’s Blue and Green Finance Framework obtained a second-party opinion from DNV (Thailand) Co., Ltd, by international principles. Thai Union’s Blue and Green Finance Framework was developed through ADB’s technical assistance under the ASEAN+3 Asian Bond Markets Initiative.
“This partnership with ADB is an important milestone for Thai Union,” said Thai Union Group CEO Thiraphong Chansiri. “It reflects our shared commitment to advancing sustainable development and reinforces the ambition outlined in our sustainability roadmap. As we continue to lead positive change across the seafood industry, we are pleased to collaborate with ADB in accelerating meaningful and lasting impact.”
Founded in 1977, Thai Union is a global seafood leader with more than 44,000 employees. Thai Union’s mission is to be the seafood industry’s leading agent of change, making a positive difference to its customers, consumers, and the way the industry is managed. In 2016, Thai Union launched its SeaChange sustainability strategy, which was expanded in 2023. SeaChange has delivered real and lasting changes in the company’s operations, such as improved seafood traceability, advanced ethical labor standards, and reduced greenhouse gas emissions.
