IFC invests in $100m Thailand’s first sustainability-linked bond

The International Finance Corporation (IFC) is investing 3.48 billion Thai baht ($100 million) in a sustainability-linked bond (SLB) issued by Central Pattana Public Company Limited (CPN), a leading retail-property developer in Thailand.

This marks IFC’s first investment in a publicly listed bond in Thailand. The proceeds from the eight billion Thai baht bond will be used to fund initiatives aimed at reducing greenhouse gas emissions and supporting Central Pattana’s green building targets.

The SLB is aligned with the Sustainability-Linked Bond Principles issued by the International Capital Markets Association.

Central Pattana committed to a sustainability performance target of more than 40 per cent absolute emissions reduction by 2031 compared to its 2019 benchmark. To help the company achieve this goal, IFC will provide both financial and advisory support.

IFC’s EDGE building certification programme will assist Central Pattana in greening its property portfolio, and the company will also benefit from IFC’s guidance on updating its decarbonisation strategy.

Through this combined support, IFC expects to contribute to Central Pattana’s target of greening 20 per cent of its property assets by 2030, which represents 6.7 per cent of Thailand’s retail property market.

Attribution: World Bank report

Subediting: M. S. Salama