ADB will invest Rs 704 crore in Energy Absolute’s green bond, proceeds from which will support the financing of the 260 MW Hanuman wind farm in Thailand.
The Asian Development Bank (ADB) will invest 3 billion Thai baht (Rs 704 crore/ USD 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.
Energy Absolute was established in 2006 and is one of the largest renewable energy companies in the country with an installed capacity of 664 MW at four solar and two wind power plants.
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 Christopher Thieme, deputy director-general of ADB’s private sector operations department. “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 percent to 20 percent of Thailand’s total energy production by 2036, up from the current 10 percent. 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.
“The green bond issuance benefits our company through lower cost of financing and demonstrates our strong commitment to sustainable development including environmental and social dimensions,” said Energy Absolute’s Deputy Chief Executive Officer Amorn Sapthaweekul.
“After the success of the 260 MW Hanuman Wind Project, we took another significant step to become a more value-added business by focusing more on patent development and innovation in clean energy and related industries including energy storage systems, electric vehicles (EV) and EV charging stations, and electric ferries.”