IFC Invests in Sustainability-Linked Bond Issued by Central Pattana in Thailand

Bangkok, Thailand, September 24, 2024—As part of efforts to accelerate the green transition in Thailand, IFC is investing in a sustainability-linked bond (SLB) issued by Central Pattana Public Company Limited (CPN), one of the leading retail-property developers in the country. This is Central Pattana’s first sustainability-linked bond and IFC’s first investment in a publicly listed bond in Thailand.

IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, is investing 3.48 billion Thai baht (approximately $100 million) in the 8 billion Thai baht bond. Proceeds will be used for greenhouse gas emissions reduction initiatives and to support Central Pattana to meet its green building targets. The SLB is being issued under Central Pattana’s Sustainability-Linked Financing Framework, which is aligned with the Sustainability-Linked Bond Principles issued by the International Capital Markets Association. Under the terms of the SLB, Central Pattana has set a sustainability performance target of more than 40 percent absolute emissions reduction by 2031 as compared to the 2019 benchmark.

Aside from financing, IFC will also assist the company in accelerating sustainability performance targets, greening its portfolio through IFC’s EDGE building certification, and updating its decarbonization strategy. The combined financial and advisory support is expected to help Central Pattana achieve its target to green 20 percent of its property assets by 2030, which comprises 6.7 percent of Thailand’s retail property market.

"The successful issuance of our first sustainability-linked bond marks a significant milestone in our journey toward net zero. This aligns with our broader commitment to creating a sustainable future for our communities and the planet. By linking our borrowing costs to our performance against ambitious sustainability targets, we are incentivizing positive change and contributing to the growth of Thailand's ESG bond market. This landmark issuance is a testament to our commitment to helping Thailand achieve its sustainability goals, and we are proud to partner with IFC in promoting sustainable development that will help secure a more resilient future for our country," said Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management of Central Pattana.

“Sustainability is at the core of our work in Thailand, and we are proud to partner with Central Pattana on its journey to accelerate sustainable development in the country,” said Jane Yuan Xu, IFC Country Manager for Thailand and Myanmar. “Through sustainability-linked investments, we can contribute more to the country’s overall climate targets and promote sustainable growth for Thailand.”