Sunday, November 17, 2019

ADB to pour Bt3 billion in Energy Absolute's green bonds

Oct 17. 2019
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By The Nation

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The Asian Development Bank (ADB) will invest Bt3 billion ($98.7 million) in Energy Absolute’s maiden green bond issuance, proceeds from which will help support long-term financing of the company’s 260-megawatt (MW) Hanuman wind farm in Thailand.

The bank's investment will contribute to Thailand’s renewable energy objectives and its ongoing efforts to reduce carbon emissions.

   The bond will have a total issuance value of Bt10 billion. It will only be the second Climate Bonds Standard-certified bond issued by a Thai energy company and the first green bond for a wind power project in Thailand. Proceeds from green bonds are used to fund, in part or in full, new or existing projects that deliver environmental or climate-related benefits.

   The agreement was signed in Bangkok today (October 17) by Christopher Thieme, Deputy Director General of ADB’s Private Sector Operations Department and Energy Absolute’s Deputy Chief Executive Officer Amorn Sapthaweekul on the sidelines of a knowledge-sharing event—the Capital Market Research Forum: Development of Green Bonds in Thailand, hosted by ADB and the Stock Exchange of Thailand’s Capital Market Research Institute.

   “Thailand has ample renewable energy resources and its green and climate bond market has tremendous potential,” said Thieme. “This maiden green bond issuance by Energy Absolute will contribute to the evolution of that market, while supporting the clean energy ambitions of Thailand’s Power Development Plan by underpinning the growth of wind power generation.”

   "The green bond issuance benefits our company through lower cost of financing and demonstrates our strong commitment to sustainable development including environmental and social dimensions,” said Sapthaweekul.

  “After the success of the 260 MW Hanuman Wind Project, we took another significant step to become a more value-added business by focusing more on patent development and innovation in clean energy and related industries including energy storage systems, electric vehicles (EV) and EV charging stations, and electric ferries. We are also preparing to launch an energy trading platform, which we have studied and developed through our own technology and innovation. This platform will play a major role in demand-side management for energy efficiency”.

   Renewable energy sources are expected to contribute 15 to 20 per cent of Thailand’s total energy production by 2036, up from the current 10 per cent. The Hanuman wind farm in northeastern Chaiyaphum Province is the largest wind farm in Thailand and is expected to reduce the country’s annual carbon emissions by 200,000 tonnes by 2020.

   Energy Absolute was established in 2006 and is one of the largest renewable energy companies in Thailand with an installed capacity of 664 MW at four solar and two wind power plants. Its strategy is aligned with both Thailand’s industrial development and climate targets and with ADB’s Strategy 2030, under which at least 75 per cent  of the bank’s committed operations will support climate change mitigation and adaptation by 2030. 

  ADB’s climate financing is expected to reach $80 billion over 2019–2030.

 The Climate Bonds Standard is a science-based international labeling scheme for debt investments used by bond issuers, governments, and investors to assess investments which genuinely help to address climate change.

  ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members with 49 from the region.

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