The Electricity Generating Authority of Thailand (Egat) has issued its first sustainability bond worth 2 billion baht, offering a 1.4% interest rate and attracting investor subscriptions 3.29 times the offering.
According to Chanunporn Phisitvanich, deputy director-general of the Public Debt Management Office (PDMO), the office procured a loan for Egat through the issuance of a sustainability-linked bond (SLB) valued at 2 billion baht with an interest rate of 1.4% per year.
The bond has a five-year maturity and is offered to institutional investors without a guarantee from the Finance Ministry.
The bond was issued under the Sustainability-Linked Finance Framework, with the Asian Development Bank serving as advisor and DNV (Thailand) Co acting as the external reviewer to certify the framework in accordance with International Capital Market Association sustainability-linked bond principles and Asean SLB standards.
Bank of Ayudhya (Krungsri) served as the underwriter.
According to Mrs Chanunporn, Egat set sustainability targets to reduce Scope 1 and Scope 2 greenhouse gas emissions per unit of electricity produced by at least 30% by 2030, equivalent to 0.3877 tonnes of CO2 per megawatt-hour, using 2021 as the baseline year.
The issuance makes Egat the first state-owned enterprise in Thailand to issue an SLB, attracting interest from institutional investors, life insurance companies, asset management companies and other funds.
The total subscription reached 6.57 billion baht, 3.29 times the amount offered.
She said the PDMO was confident the successful issuance would serve as a benchmark for other state-owned enterprises, helping to expand benefits in economic, social, and environmental sustainability over the long term.