The Asian Development Bank (ADB) is supporting Thailand state utility operator Provincial Electric Authority (PEA) in issuing its first sustainability bond. The bond will raise 1 billion baht ($35 million) to support the development of renewable energy projects and improve energy access across the country.
The bond carries a 5-year maturity and will be issued on 21 August to Thai institutional investors, marking a significant step toward developing a robust and sustainable bond market in the country.
The proceeds will support PEA's sustainability agenda, which aims to develop projects that will promote renewable energy, such as microgrid development, and enhance climate resilience and climate adaptation initiatives, such as submarine cables to remote islands. PEA will also use the proceeds to improve energy accessibility, particularly to areas without access to electricity, and elevate the quality of life for beneficiaries.
“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,” said ADB Country Director for Thailand Anouj Mehta. “PEA is demonstrating the key role utility operators play in supporting the country’s decarbonization, 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 mobilization of public and private capital, and support sustainable and transition financing in the region.”
“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. PEA will issue sustainability bonds and promote both green and social finance,” said PEA Governor Supachai Ek-Un. “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 Sustainable Development Goals.”
ADB provided technical assistance through the Green, Social, Sustainable and Other Labeled (GSS+) Bonds Initiative for Southeast Asia, a collaboration between the Asian Bond Markets Initiative (ABMI) and the ASEAN Catalytic Green Finance Facility (ACGF). ABMI is an initiative of the governments of ASEAN, the People's Republic of China, Japan, and the Republic of Korea to develop local currency bond markets. The ACGF is an initiative of the ASEAN Infrastructure Fund to accelerate green infrastructure investments in Southeast Asia.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
