Central Retail Corporation Plc (CRC) has launched Thailand’s first green bond in the retail and wholesale sector, with the proceeds allotted for investment in renewable energy projects.
In addition to the green bond, CRC offered two tranches of conventional bonds to institutional investors, bringing the total size of the issue to 7.5 billion baht.
Panet Mahankanurak, chief financial officer of CRC, said the three bond tranches with tenures ranging from three to five years and coupon rates of between 1.63% and 1.93% garnered overwhelming demand from leading institutional investors, with total subscriptions exceeding 30 billion baht, more than four times the offering amount.
He said the issuance comprises 1 billion baht in green bonds and 6.5 billion in conventional bonds, underscoring investor confidence in CRC’s strong, stable and credible position as a retail and wholesale industry leader — both financially and in its sustainability performance.
“The proceeds from the green bond will be used to refinance or reimburse prior investments in renewable energy projects, particularly solar energy installations on the rooftops of Central Department Store, Robinson Department Store, Tops, Thaiwatsadu and Robinson Lifestyle Mall branches. These projects aim to increase the proportion of clean energy consumption and advance our ‘ReNEW’ environmental strategy,” said Mr Panet.
The solar panel installations are expected to generate more than 90,000 megawatt-hours of electricity annually, equivalent to reducing more than 45,000 tonnes of greenhouse gas emissions a year, according to CRC.
Meanwhile, the proceeds from the 6.5 billion baht of the two conventional bond tranches will be used to repay part of the company’s bank loans, he said.
Mr Panet said this bond issuance forms part of CRC’s long-term financial strategy to mitigate exposure to future interest rate volatility by optimising its debt structure, shifting from short-term to long-term financing, and balancing fixed and floating interest rates.
This approach enables CRC to manage financing costs efficiently, strengthen its capital structure, and enhance financial flexibility to support sustainable business growth over the long term.
CRC appointed Bangkok Bank Plc, Bank of Ayudhya Plc, and Kasikornbank Plc as joint lead arrangers, with Bank of Ayudhya also serving as the sustainability structuring advisor for this issuance.