Centara Hotels & Resorts, Thailand's leading hotel operator, has issued its first sustainability-linked bond worth 1 billion baht amidst booming demand in Asia.
The company said the issuance marked a milestone in its commitment to environmental, social and governance (ESG) concerns.
The bond has a five-year maturity and was arranged by UOB, linking financing costs directly to Centara's performance on two key sustainability performance targets: reducing greenhouse gas (GHG) emission intensity in its hotel operations, and reducing water consumption intensity across its properties.
The bond issuance reflects Centara's dedication to integrating sustainability into its business practices while actively contributing to the global push toward a low-carbon future.
"Our first sustainability-linked bond [SLB] reinforces our commitment to a more sustainable hospitality industry," said Gun Srisompong, Centara's chief financial officer and vice-president for finance and administration.
"By embedding ESG principles into our financing framework, we're not only accelerating our efforts to reduce our environmental impact, but also setting measurable goals that drive accountability and progress."
Centara's SLB aligns with the company's broader sustainability strategy, which includes eliminating single-use plastics across all properties, achieving global sustainable tourism.
The company is seeking Global Sustainable Tourism Council certification for all its properties by 2025, reducing energy consumption and GHG emissions by 40% by 2029, with a long-term goal of achieving net-zero emissions by 2050.
The bond, issued on Dec 11, 2024, is offered to institutional investors and high net worth individuals, reflecting strong market confidence in Centara's sustainability-driven vision.
Aligned with the SLB principles set by the International Capital Market Association, this issuance ensures adherence to global standards for sustainable finance.
Centara's commitment to sustainability underscores its goals of becoming a leader in sustainable hospitality and a Top 100 Global Hotel Operator by 2027.
Centara has 92 properties spanning all major Thai destinations as well as the Maldives, Vietnam, Laos, Japan, Oman, Qatar and the UAE.
Centara's portfolio comprises six brands -- Centara Reserve, Centara Boutique Collection, Centara Grand, Centara, Centara Life and COSI Hotels -- ranging from luxury island retreats and upscale family resorts to affordable lifestyle concepts supported by innovative technology.
