PEA achieves milestone with successful issuance of Sustainability Bond

Mr. Supachai Ek-Un, the PEA Governor presided over the press conference, with Mrs. Chanunporn Phisitvanich, Deputy Director-General of the Public Debt Management Office (PDMO), Ms. Ariya Tiranaprakij, Deputy Managing Director of the Thai Bond Market Association (ThaiBMA), Mr. Anouj Mehta, Country Director ADB Thailand, Resident Mission Southeast Asia Department, Asian Development Bank (ADB), Mr. Thomas Leonard, Head of Section, Sustainability Services Supply chain and product assurance, DNV (Thailand) Co., LTD, Ms. Suyanee Phuripanyawanich, Assistant Managing Director, Bangkok Bank Public Company Limited, joining the congratulations and Mr. Kosintr Puongsophol, Senior Financial Sector Specialist, Asian Development Bank (ADB), presented on the topic of Fundraising Trends with ESG Bonds at the PEA headquarters.

The bond, which has a 5-year maturity, of 1 billion baht, with a fixed-coupon bond at 2.67% per annum, issued its first sustainability bond, with the Public Debt Management Office, Ministry of Finance, as the financial facilitator, and Bangkok Bank Public Company Limited as the underwriter. The bond proceeds will be allocated to fund two projects: the construction of the submarine cable extension to Koh Tao, Surat Thani province, and Microgrid Development at Phaluai island, Surat Thani province.

The Asian Development Bank (ADB) acted as the Sustainable Finance Framework advisor and provided certification for the bond issuance. DNV (Thailand) Co., Ltd. served as the independent second-party opinion provider, ensuring compliance with PEA’s sustainable finance framework with international best practices. Notably, PEA is the first state-owned energy enterprise in Thailand to align its framework with the ASEAN Taxonomy version 3.

The bond issuance was met with overwhelming interest from institutional investors, underscoring the growing demand for environmentally friendly investments, to the point that it was able to offer the full amount and the subscription amount was 6 times the offered amount. This achievement highlights PEA's commitment to innovation in green finance, and aligns with the organization's commitment to carbon neutrality by 2037 and net zero emissions by 2065, in line with the government's policy to drive sustainable development in all dimensions of the economy, society, and the environment.

The PEA would like to express its sincere gratitude to all investors who have shown interest in participating in our bond auction. PEA has ongoing plans to issue bonds and would like to invite investors to participate in future auctions. Investors can follow up on PEA's bond issuance plans through the SOE quarterly borrowing plan on the PDMO website (www.pdmo.go.th).