Central Pattana Plc (CPN) and United Overseas Bank (UOB) Thailand have launched green bonds to stimulate the growth of mixed-use and green buildings domestically and overseas.
The move reaffirms CPN's commitment to promoting environmental sustainability as the first green bond in Thailand's real estate and retail industry, said the company.
The bonds include investment projects related to renewable energy, sustainable water and wastewater management, energy efficiency improvement, green buildings and other environment-related projects for the company's businesses or affiliates.
This comprises various mixed-use projects, including Central malls, residences, office buildings and hotels nationwide. Future projects, both domestically and internationally, that follow the investment plan are to be included.
UOB Thailand is the underwriter of the bonds, while the Asian Development Bank is providing technical assistance through the Asean+3 Asian bond markets initiative, which helps develop sustainable local-currency bond markets in Asean, along with China, Japan and South Korea (collectively known as Asean+3).
Naparat Sriwanvit, chief financial officer and senior executive vice-president of finance, accounting and risk management at CPN, said the offering of a green bond is part of the company's plan to focus on improving the planet in line with the UN's Sustainable Development Goals and the plan for net zero emission by 2050.
"Central Pattana considers this an important commitment -- as a representative of the private sector for more than 40 years that wishes to pass on a better environment to the planet," she said.
"We are the first company in the Thai real estate and retail industry to launch a green bond and our institutional investors have given great feedback on this project."
The offering to institutional investors is worth 2 billion baht and is to be issued by UOB Thailand, consisting of three-year green bonds worth 1 billion baht and unsubordinated, unsecured, 3.5-year bonds worth 1 billion baht.
The projects are expected to meet the criteria specified in the green finance framework, following the green bond principles and Asean green bond standards, with DNV Business Assurance Australia as an independent reviewer. The bond has been rated "AA credibility" with a stable outlook by Tris Rating.
CPN said it is the first and only real estate firm in Thailand to be a member of the Global Sustainability Index, and on the DJSI World for four consecutive years.