BANGKOK — The Government Housing Bank of Thailand, with support from the Asian Development Bank (ADB), has issued its first sustainability bonds in accordance with the International Capital Market Association’s Sustainability Bond Guidelines and the Association of Southeast Asian Nations (ASEAN) Sustainability Bond standards.
The Government Housing Bank issued the 8.5 billion Thai baht (approximately $244 million) in sustainability bonds with 3- and 12-year maturities on 9 December. The bonds were sold to Thai institutional investors, with subscriptions nearly twice the issuance amount. The proceeds will be used to refinance and finance the bank’s environmental and social projects, including homeownership programs for low- to middle-income households and to promote ownership of energy-efficient housing units.
“The issuance of the bank’s first sustainability bond was well received by local institutional investors,” said Government Housing Bank President Chatchai Sirilai. “This demonstrates the importance of integrating environmental, social, and governance considerations into the bank’s business operations. In addition to contributing to the development of a sustainable capital market in Thailand, the sustainability bonds help the bank in achieving our mission of enabling Thais to own their own homes and propels the bank toward sustainability.”
“This transaction demonstrates ADB’s commitment to assisting Thailand’s sustainable capital market development, which will help the country achieve a long-term, green, and inclusive recovery from COVID-19,” said ADB Country Director for Thailand Anouj Mehta. “Financial institutions like the Government Housing Bank can play a critical role in mobilizing public and private capital at scale to support sustainable development.”
ADB provided technical assistance to support project selection, development of bond framework, external review, and capacity building through a partnership between the Asian Bond Markets Initiative (ABMI) and the Green, Social, Sustainable, and Other Labeled (GSS+) Bonds in Southeast Asia Initiative under the ASEAN Catalytic Green Finance Facility (ACGF). ABMI is an initiative of the governments of ASEAN, the People’s Republic of China, Japan, and the Republic of Korea to develop local currency bond markets. ACGF is an initiative of the ASEAN Infrastructure Fund to accelerate green infrastructure investments in Southeast Asia.
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 68 members—49 from the region.