IFC Invests in Central Pattana’s First Sustainability-Linked Bond to Accelerate Green Transition

$100 million investment to support emissions reduction and green building initiatives, marking a significant step towards Thailand's sustainability goals.

The International Finance Corporation (IFC), part of the World Bank Group, has announced its investment in Central Pattana Public Company Limited's (CPN) first Sustainability-Linked Bond (SLB). The investment, valued at 3.48 billion Thai baht (approx. $100 million), is part of CPN's 8 billion Thai baht bond issuance, designed to fund projects aimed at greenhouse gas emissions reduction and advancing green building targets.

This bond issuance represents IFC's first investment in a publicly listed bond in Thailand and is issued under Central Pattana's Sustainability-Linked Financing Framework, aligning with the Sustainability-Linked Bond Principles of the International Capital Markets Association. Under the SLB's terms, Central Pattana has committed to a 40% reduction in absolute emissions by 2031, using 2019 as the benchmark.

The investment is part of a broader strategy to green CPN’s property portfolio, with IFC providing not only financial backing but also advisory services to help the company accelerate its sustainability performance. Central Pattana aims to green 20% of its property assets by 2030, representing a significant portion of Thailand's retail property sector, which covers 6.7% of the market.

Naparat Sriwanvit, CFO of Central Pattana, emphasized the bond's importance: "The issuance of our first sustainability-linked bond is a critical milestone in our commitment to net zero and Thailand's ESG bond market." Jane Yuan Xu, IFC's Country Manager for Thailand and Myanmar, echoed this, highlighting the partnership's role in promoting sustainable growth and meeting Thailand's climate targets.