ADB Supports Thai State Utility Operator’s First Sustainability Bond
The Asian Development Bank (ADB) is assisting Thailand‘s state utility operator, the Provincial Electric Authority (PEA), in launching its inaugural sustainability bond. This bond aims to raise 1 billion baht ($35 million) to fund renewable energy projects and enhance energy access throughout the country.
With a 5-year maturity, the bond is set to be issued on 21 August to Thai institutional investors. This issuance represents a significant milestone in the development of a robust and sustainable bond market in Thailand.
The proceeds from the bond will advance PEA’s sustainability agenda, focusing on projects that promote renewable energy, such as microgrid development, and initiatives that enhance climate resilience and adaptation, including the installation of submarine cables to remote islands. Additionally, PEA will use the funds to improve energy accessibility, particularly in areas lacking electricity, thereby improving the quality of life for these communities.
“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,” stated ADB Country Director for Thailand, Anouj Mehta. “PEA is demonstrating the critical role that utility operators play in supporting the country’s decarbonization efforts, given the energy sector’s significant contribution to Thailand’s greenhouse gas emissions. We aim to facilitate more sustainable bond issuances, increase the mobilization of public and private capital, and support sustainable and transition financing in the region.”
PEA Governor Supachai Ek-Un added, “PEA is committed to achieving carbon neutrality by 2037, 13 years ahead of the national target, and reaching 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. 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). The ABMI, an initiative of the governments of ASEAN, the People’s Republic of China, Japan, and the Republic of Korea, focuses on developing local currency bond markets. The ACGF is an ASEAN Infrastructure Fund initiative aimed at accelerating green infrastructure investments in Southeast Asia.
ADB remains committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty. Established in 1966, ADB is owned by 68 members—49 from the region.
