The Asian Development Bank (ADB) will invest 3 billion Thai baht ($98.7 million) in Energy Absolute’s maiden green bond issuance, proceeds from which will help support the long-term financing of the company’s 260-megawatt (MW) Hanuman wind farm in Thailand. The investment will contribute to Thailand’s renewable energy objectives and its ongoing efforts to reduce carbon emissions.
The bond will have a total issuance of 10 billion Thai Baht. 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.
“Thailand has ample renewable energy resources and its green and climate bond market has tremendous potential,” said Deputy Director-General of ADB’s Private Sector Operations Department Mr. Christopher 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.”
Renewable energy sources are expected to contribute 15% to 20% of Thailand’s total energy production by 2036, up from the current 10%. 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 tons by 2020.
Original source: ADB
Published on 17 October 2019