ADB Taken Thailand’s 1st green bond Worth Five Billion Baht issued by BGRIM at 3.6% Interest Rate.
-3.5 billion baht to be used inrefinancing of 59.7 MW BGRIM-Yanhee Solar Power project and 8mw Srakaew power project.
-1.5 billion baht to be used as the project finance for 31 mw Cooperative Solar of The Veterans Administration under BGRIM port
11-12-2018 – Today at Grand Hyatte Erawan Bangkok B.Grimm Power Plc (BGRIM), one of Thailand’s leading private power producers, announced a landmark issuance of Thailand’s first certified climate bonds.
BGRIM’s green debentures, worth five billion baht with 5-year and 7-year maturity, were subscribed by the Asian Development Bank (ADB) at 3.6% interest rate lower than the average rate of BGRIM.
The proceeds will go towards BGRIM’s renewable energy development projects in Thailand as part of the Company’s contribution to establish a low-carbon pathway for sustainable economic growth.
The issuance plays an important part in BGRIM’s drive to raise the share of renewable energy generation in its overall portfolio from 10% to 30% by 2021, said BGRIM President Preeyanart Soontornwata.
“ADB’s support was invaluable to ensure the bonds comply with the International Capital Markets Association’s Green Bond Principles and Climate Bond Initiative standards, while building on a long-standing relationship BGRIM and ADB have forged through multiple transactions,” she added.
“This green bond will help Thailand achieve its target of reducing greenhouse gas emissions by an unconditional 20% by 2030,” Michael Barrow, Director General of Private Sector Operations Department at ADB, pointed out.
“BGRIM is a pioneer of renewable energy and low-carbon growth in Thailand and increasingly across the region, and ADB is honoured to be its long-term partner in this effort,” he said.
Furthermore, this issuance will foster the development of the green bond market in Thailand by showcasing international best practice for genuine green and climate bonds, he noted.
The green bond proceeds will be earmarked for BGRIM’s nine operational solar power plants with a total capacity of 67.7 megawatts (MW) and seven plants of the kind under construction—all in Thailand and with a combined capacity of 30.8 MW.
This green bond represents ADB’s third transaction with BGRIM, following a loan accord early this year for the expansion into renewable and distributed power generation markets throughout Southeast Asia and a subscription to initial public offering (IPO) shares last year.
For ADB, the BGRIM debenture subscription is ADB’s second green bond investment.
In 2016, it subscribed to an issuance to support the Tiwi and Makban geothermal power project in the Philippines—the country’s first green bond offering.
Set up in 1993, BGRIM has become one of Thailand’s largest private power producers with 33 power plants in operation and a combined installed capacity of over 2,000 MWs.
According to ADB, its investment in BGRIM’s green bond is in consistent with ADB’s new Strategy 2030 which mandates that at least 75% of the number of ADB’s committed operations support climate change mitigation and adaptation by 2030, with climate finance from its own resources reaching US$80 billion over 2019–2030.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region.
The Green Bond will be The win-win case for BGTIM and ADB, open opportunity for BGRIM for more green bond.
According to Mr.Noppadej Kannasutr BGRIM CFO the outstanding loan of BGRIM is 52 Billion Baht in the next five year It require 85 billion baht more to acchive it’s total 5,000 mw plan which 2, 045 of 3,200 of present project has been commercially operated.
He said about 30% or 26 billion baht
85 billion baht projected future finance BGRIM required target to be green bond and some perpecturual bond while the remain 59 billion baht was expected to be project loan from financial institutions.
