PEA launches first sustainability bond worth 1 billion baht

The Provincial Electricity Authority (PEA) announced the successful launch of its first sustainability bond, marking a significant step towards its green finance goals and that of Thailand.

PEA Governor Supachai Ek-Un, along with representatives from the Public Debt Management Office (PDMO), Asian Development Bank (ADB), Bangkok Bank, DNV (Thailand), and Thai Bond Market Association, held a press conference yesterday, August 15, at the PEA headquarters to reveal the results of the bond offering.

The 1-billion-baht bond features a five-year maturity and offers a fixed coupon repayment at 2.67% per annum. PDMO was selected as the financial facilitator, while Bangkok Bank served as the underwriter.

Proceeds from the bond will fund two key projects: the extension of a submarine cable to Koh Tao in Surat Thani and the development of a microgrid on Koh Phaluai, also in Surat Thani.

The ADB acted as the sustainable finance framework adviser and provided certification for the bond issuance. DNV (Thailand) offered an independent second-party opinion, ensuring that the bond complies with PEA’s sustainable finance framework and international best practices.

The PEA has become the first state-owned energy enterprise in Thailand to align its framework with the ASEAN Taxonomy version 3, which uses a multi-tiered approach to assessing sustainable activities.

Institutional investors showed overwhelming interest in the bond issuance, indicating a growing appetite for environmentally friendly investments. The bond was fully subscribed, with the subscription amount reaching six times the offered amount, said the governor.

“The successful issuance of this bond underscores PEA’s commitment to innovation in green finance and aligns with our goals of achieving carbon neutrality by 2037 and net zero emissions by 2065. This is in line with the government’s policy to drive sustainable development.”

This milestone highlights PEA’s dedication to reducing its environmental footprint and supporting sustainable development initiatives, ensuring a greener future for Thailand, reported Bangkok Post.