ADB and Thai Union Seal $150M Blue Finance Deal to Boost Sustainable Shrimp Farming

In a landmark move that could redefine the aquaculture industry in Asia, the Asian Development Bank (ADB) and Thai Union Group Public Company Limited (Thai Union) have signed a $150 million blue finance agreement aimed at enhancing the sustainability and resilience of shrimp production in Thailand. The collaboration reflects a shared vision to address climate and environmental risks in aquaculture while empowering shrimp farmers and strengthening global seafood supply chains.

What is Blue Finance?

Blue finance is an emerging investment category that supports sustainable use of ocean and water resources for economic growth, improved livelihoods, and ecosystem health. This includes sectors like fisheries, aquaculture, marine biodiversity conservation, and wastewater treatment. The ADB–Thai Union partnership marks a significant step forward in applying blue finance to transform an essential segment of the global seafood industry.

Financing Details and Structure

ADB is the mandated lead arranger and bookrunner for this financing package. The deal includes a direct $50 million loan from ADB’s ordinary capital resources and a syndicated B Loan of $100 million provided by a consortium of prominent international banks:

• Bank of China (Hong Kong) Limited

• HSBC

• MUFG Bank Ltd (Singapore)

• Oversea-Chinese Banking Corporation Limited

• Sumitomo Mitsui Banking Corporation (Singapore)

• United Overseas Bank Limited

This arrangement illustrates ADB’s critical role in mobilizing private capital to support sustainable development goals in agriculture and aquaculture. It is the first private sector agribusiness loan that ADB has facilitated in Thailand, indicating a new frontier for development finance in the region.

Strategic Goals of the Financing Package

The $150 million loan will support multiple aspects of Thai Union’s shrimp value chain. Specifically, it will provide working capital for:

• Procurement and processing of sustainably sourced shrimp

• Export operations

• Operating expenses tied to sustainability-driven extension services

These services include farmer training, support for obtaining certifications, R&D, and pilot initiatives focused on environmental and social sustainability.

Crucially, the funding is paired with a technical assistance grant from ADB. This grant will focus on enhancing shrimp farmers’ resilience to climate events—such as heatwaves—and strengthening their financial literacy and management skills, a necessary step for long-term self-sufficiency.

Elevating Shrimp Sustainability Standards

Globally, sustainable shrimp farming is still in its infancy. Only 11.5% of shrimp were certified under recognized standards—such as the Aquaculture Stewardship Council (ASC) or Best Aquaculture Practices (BAP)—as of 2023. Thai Union aims to significantly improve these figures by working with local shrimp farmers to implement best practices and support certification under benchmarks approved by the Global Sustainable Seafood Initiative (GSSI).

Increased certification not only assures consumers of responsible practices but also helps producers access premium markets and improve profitability. Furthermore, responsible aquaculture helps alleviate pressure on wild fisheries and contributes to healthier marine ecosystems.

Environmental and Economic Significance

“Aquaculture supplies over half of the world’s seafood and production is concentrated in Asia,” said Anouj Mehta, ADB Country Director for Thailand. “However, the sector is exposed to risks including pollution, overfishing, and deforestation tied to rising demand for aquafeed. This transaction aims to improve sustainability and resilience in the shrimp supply chain, tackling these risks head-on.”

Indeed, climate change and disease outbreaks have severely impacted aquaculture productivity in recent years. The blue loan will help Thai Union support farmers in implementing biosecurity measures, adopting climate-smart farming techniques, and improving water quality management.

Governance and Verification

The blue financing initiative adheres to rigorous international standards. It was developed under Thai Union’s Blue and Green Finance Framework, which received a second-party opinion from DNV (Thailand) Co., Ltd to validate its alignment with global blue finance principles.

This framework was built through technical support provided by ADB under the ASEAN+3 Asian Bond Markets Initiative. Such alignment ensures transparency, credibility, and accountability in how funds are used and reported.

A Vision for Industry-Wide Change

“This partnership with ADB is an important milestone for Thai Union,” said Thiraphong Chansiri, CEO of Thai Union Group. “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 one of the world’s largest seafood producers, employing over 44,000 people globally. The company’s sustainability platform, SeaChange, was launched in 2016 and significantly expanded in 2023. It has delivered progress in traceability, labor rights, and emissions reduction.

Future Outlook

This blue finance initiative could serve as a blueprint for sustainable aquaculture investments in other countries, particularly those in Southeast Asia where shrimp farming is a major economic activity. As the need to balance food security with ecological preservation grows more urgent, such partnerships could be key in ushering a new era of environmentally responsible aquaculture.