The Asian Development Bank (ADB) is facilitating the Provincial Electric Authority (PEA) of Thailand in issuing its inaugural sustainability bond, aimed at generating 1 billion baht ($35 million) to fund renewable energy projects and improve energy access across the nation. The bond, with a 5-year maturity, will be available to Thai institutional investors from August 21.
This bond will channel funds into renewable energy projects and initiatives to enhance energy access throughout Thailand. Specifically, the proceeds will be directed towards projects such as microgrid development and the installation of submarine cables to remote islands, improving climate resilience and adaptation efforts. Additionally, the funds will help extend electricity to areas currently without access, thereby improving the quality of life for residents in those regions.
The bond issuance is supported by the ADB through the Green, Social, Sustainable and Other Labeled (GSS+) Bonds Initiative for Southeast Asia, a cooperative effort involving the Asian Bond Markets Initiative (ABMI) and the ASEAN Catalytic Green Finance Facility (ACGF).
ADB Country Director for Thailand Anouj Mehta said, “This transaction affirms ADB’s commitment to supporting pioneering, ESG-driven capital market issuances by state-owned enterprises and private corporations that align with the ASEAN Taxonomy for Sustainable Finance, the region’s framework for assessing sustainable activities. PEA is demonstrating the key role utility operators play in supporting the country’s decarbonisation, given the significance of the energy sector in contributing to Thailand’s greenhouse gas emissions. We hope to create more sustainable bond issuances, increase the mobilisation of public and private capital, and support sustainable and transition financing in the region.”
PEA Governor Supachai Ek-Un emphasised the organisation’s commitment to environmental goals, stating, “PEA is committed to achieving carbon neutrality by 2037, which is 13 years earlier than the national target, and net zero by 2065, in line with the Government of Thailand’s policy. In collaboration with ADB, PEA has developed a sustainable finance framework that adheres to international and regional standards, aimed at building investor confidence and aligning with the SDG.”
This initiative is instrumental in developing local currency bond markets and fostering green infrastructure investments across Southeast Asia.