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ADB to invest $155m in B.Grimm Power’s Green Bond to develop clean energy in Thailand

Asian Development Bank (ADB) will invest THB5bn ($155m) in Thailand’s B.Grimm Power Public Company’s (B.Grimm Power) maiden 5-year and 7-year green bonds—the first certified climate bonds to be issued in Thailand.

Proceeds will finance renewable energy projects in Thailand, helping to establish a low-carbon pathway for sustainable economic growth.

B.Grimm Power President Preeyanart Soontornwata said “This issuance will foster the development of the green bond market in Thailand by showcasing international best practice for genuine green and climate bonds.

“ADB’s support was invaluable to ensure the bonds comply with the International Capital Markets Association Green Bond Principles and Climate Bond Initiative standards, building on a long-standing relationship we have forged through multiple transactions.”

ADB private sector operations department director general Michael Barrow said: “This green bond will help Thailand achieve its target of reducing greenhouse gas emissions by an unconditional 20% by 2030.

“B.Grimm is a pioneer of renewable energy and low-carbon growth in Thailand and increasingly across the region, and ADB is honored to be its long-term partner in this effort.”

The green bond proceeds will be earmarked for nine operational solar power plants with a total capacity of 67.7MW and seven solar plants under construction—all in Thailand and with a total capacity of 30.8MW.

This is ADB’s second green bond project. In 2016 it extended a guarantee to support an issuance for the Tiwi and Makban geothermal power project in the Philippines—the country’s first green bond offering. It is ADB’s third transaction with B.Grimm.

In 2017, ADB subscribed to its initial public offering. Early this year it signed a loan agreement with the company to support expansion into renewable and distributed power generation markets throughout Southeast Asia.

B.Grimm was established in 1993 and is one of Thailand’s largest private power producers with a total capacity of 2,045 megawatts across 15 gas-fired plants. In recent years, it has diversified into renewable energy and now also operates 15 solar power plants. Based on this success and strong potential for expansion in Association of Southeast Asian Nations (ASEAN) countries, B.Grimm plans to increase the share of renewable energy generation in its portfolio from 10% to 30% by 2021.

This investment is in line with ADB’s new Strategy 2030, which mandates that at least 75% of the number of ADB’s committed operations will support climate change mitigation and adaptation by 2030, with climate finance from its own resources reaching $80 billion over 2019–2030.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 67 members—48 from the region. In 2017, ADB operations totaled $32.2bn, including $11.9bn in cofinancing.

Source: Company Press Release