CPN issues sustainability-linked bonds worth B8bn
text size

CPN issues sustainability-linked bonds worth B8bn

Funds to support clean energy projects

Listen to this article
Play
Pause
Ms Naparat says CPN's first issuance of sustainability-linked bonds marks a significant step towards achieving carbon neutrality, aligning with the firm's commitment to building a sustainable future and supporting the growth of the ESG bond market in Thailand.
Ms Naparat says CPN's first issuance of sustainability-linked bonds marks a significant step towards achieving carbon neutrality, aligning with the firm's commitment to building a sustainable future and supporting the growth of the ESG bond market in Thailand.

Central Pattana (CPN) has issued sustainability-linked bonds (SLBs) to support clean energy projects, aiming to become a net-zero greenhouse gas emissions organisation by 2050.

The company is raising funds to drive the development of mixed-use projects and green buildings both domestically and internationally, aiming for a low-carbon society, making sustainability a reality.

CPN recently partnered with leading financial institutions UOB and the Asian Development Bank (ADB) to be its advisors in creating a sustainability-linked finance framework, becoming the first firm in Thailand's real estate and retail sectors to issue SLBs, with a total value of 8 billion baht.

The funds will support projects related to renewable energy, sustainable water and wastewater management, energy efficiency improvements, and other sustainability-related projects for its operations or subsidiaries.

These include various mixed-use projects, such as Central shopping centres, residential properties, office buildings, and hotels across the country, along with future projects both domestically and internationally, in line with the company's planned initiatives.

Naparat Sriwanvit, chief financial officer and senior executive vice-president for finance, accounting and risk management at CPN, said the firm is committed to developing spaces that enhance the quality of life for people, communities and the environment, guided by a vision of "imagining better futures for all" in the role of a "place maker". This involves connecting "place-people-planet", she said.

"ESG financing is part of the company's commitment to environmental care and a better planet, in line with the UN's sustainable development goals and the journey to net zero by 2050. Our first issuance of sustainability-linked bonds and collaboration with UOB, ADB and the International Finance Corporation [IFC] in promoting sustainable development marks a significant step towards achieving carbon neutrality. The move aligns with our commitment to building a sustainable future and supporting the growth of the ESG bond market in Thailand," said Ms Naparat.

Jane Yuan Xu, country manager for Thailand and Myanmar at the IFC, said sustainability is at the core of its work in Thailand.

"We are proud to collaborate with CPN in accelerating sustainable development in the country. Through sustainability-linked investments, we can contribute to supporting the nation's climate goals and promote sustainable growth for Thailand," she said.

The sole lead underwriter of the bonds is UOB, and Vira-anong Chiranakhorn Phutrakul, managing director, deputy chief executive and head of wholesale banking at UOB Thailand, said she believes the success of this landmark issuance of SLBs will pave the way for greater issuance in Thailand.

Satoru Yamadera, economic research and development impact department advisor at ADB, said this transaction demonstrates ADB's commitment to fostering the growth of a sustainable bond market in Thailand.

"The successful issuance of CPN's sustainability-linked bonds is an excellent example of how the private sector can lead sustainable development and serves as an example for other entities across the region," he said.

The SLBs with a five-year maturity offer a fixed interest rate of 2.86% per year, maturing in 2029, while those with a seven-year maturity have a fixed interest rate of 3.14% per year.

Interest payments are made every six months throughout the bond's duration. The total issuance is 8 million units, valued at 8 billion baht.

The bonds are issued under CPN's sustainability-linked finance framework, which aligns with the sustainability-linked bond principles established by the International Capital Market Association.

Do you like the content of this article?
COMMENT (1)