ADB Supports Thailand’s First Sustainability Bond Issuance By PEA, Raising $35 Million For Renewable Energy

The Asian Development Bank (ADB) is backing the Provincial Electric Authority (PEA) of Thailand in launching its inaugural sustainability bond, which aims to raise 1 billion baht (approximately $35 million). Scheduled for issuance on August 21, this 5-year bond represents a pivotal moment in Thailand’s development of a sustainable bond market.

The bond proceeds will fuel PEA’s sustainability initiatives, including the advancement of renewable energy projects such as microgrid systems and climate resilience measures like submarine cables to remote islands. The funds will also enhance energy accessibility in underserved areas, contributing to improved quality of life for local communities.

ADB’s Country Director for Thailand, Anouj Mehta, highlighted the significance of the bond: “This issuance underscores ADB’s dedication to supporting innovative, ESG-driven capital market initiatives by both state-owned and private entities, in line with the ASEAN Taxonomy for Sustainable Finance. PEA’s efforts illustrate the crucial role utility operators play in advancing Thailand’s decarbonization goals, given the energy sector’s impact on greenhouse gas emissions.”

PEA Governor Supachai Ek-Un emphasized the organization’s commitment to environmental sustainability, stating, “PEA is dedicated to achieving carbon neutrality by 2037, 13 years ahead of the national target, and reaching net zero by 2065. Our collaboration with ADB has led to the development of a sustainable finance framework that meets international standards and aligns with the Sustainable Development Goals.”

The initiative benefits from ADB’s technical support through the Green, Social, Sustainable and Other Labeled (GSS+) Bonds Initiative for Southeast Asia. This effort, part of a broader collaboration involving the Asian Bond Markets Initiative (ABMI) and the ASEAN Catalytic Green Finance Facility (ACGF), aims to boost green infrastructure investments in the region.