Bangkok--9 Nov--KASIKORNBANK
KASIKORNBANK, in cooperation with the French Development Agency (AFD), has launched the Green Accommodation Program with loans carrying interest rates of no more than MLR -1.50 percent per annum for hotels located in coastal areas, to be used in projects such as wastewater treatment, solid waste management as well as energy efficiency. Lending under this program is expected to reach 1.25 billion Baht.
Mr. Krisada Lamsam, Senior Executive Vice President of KASIKORNBANK, said the Bank has put an emphasis on its “Going Green” commitment to environmental preservation. Recently, the Bank joined hands with the French Development Agency (AFD) in introducing the Green Accommodation Program with an aim of providing green credit with special low interest rates for hotel operators on the Andaman coast, Ko Samui and Ko Chang. Loans are provided for hotel improvements including projects related to environmental preservation, such as wastewater treatment, solid waste management, water management for consumption, and energy efficiency. Eligible small hotels must set an 80:20 investment ratio in building renovation and environmental projects, medium-sized hotels at 75:25, and large hotels at 50:50.
KBank and AFD will jointly provide loans under the Green Accommodation Program of 1.25 billion Baht, equivalent to 30 million Euros. Credit limit is allocated at 2.5 to 130 million Baht per loan, with the terms of 5 to 7 years. Maximum interest rate charged in this program is MLR -1.50 percent, or 4.50 percent at this time. (KBank’s current MLR is 6.00 percent per annum.)
Hotels applying for credits under this program must apply for a “green” certification for tourism businesses, including the Green Leaf Certificate from the Green Leaf Foundation; the Travelife Award from Travelife, a European tourism organization; and the Green Globe Certificate. These certificates are for environmental conservation standards in the hotel industry.
Martha Stein-Sochas, Director, Asia Department, AFD (the French Development Agency), said the program was conceived as a result of the thriving tourism industry, especially in coastal tourist attractions popular among both local and foreign tourists. Continued growth in tourist arrivals and a rising number of new hotels amid the rapid pace of urbanization have affected marine and coastal biodiversity and the surrounding environment. Extensive and uncontrolled use of natural resources, as well as waste management inefficiency, are also to blame.
AFD — a state-owned specialized financial institution of France — has provided financial support for countries having a good relationship with France, in various areas of development for the purposes of economic expansion, education and environmental conservation and preservation. KBank has been chosen as AFD’s business partner in Thailand because the Bank has always placed an emphasis on environmental policies and development with consistent implementation.
The Green Accommodation Program’s main objective is to provide financial support in the form of loans with low interest rates to hotel-related projects that promote environmentally sound development. In addition to benefiting from improved management of Thailand’s coastal environment and tourist destinations, participating hoteliers will be able to promote their environmental projects as a selling point for eco-conscious tourists, which will lead to sustainable business growth.
Mr. Krisada added that KBank has consistently conducted environmental conservation activities, including renovation of its Cheang Watthana Building to be a “Green Building”, with awards presented by several organizations, special projects and loan products aimed at granting financial support to environmentally-friendly businesses, such as an effort in cooperation with the National Science and Technology Development Agency (NSTDA) to provide a Tech Development Fund for Biogas, K-Energy Saving Loan, and credits for leading energy producers to create renewable energy farms. The cooperation shown in this program is a reflection of the Bank’s commitment to environmental preservation alongside business undertakings for sustainable growth.