Central Pattana has issued Sustainability-linked Bond to support clean energy projects, aiming to become a Net Zero greenhouse gas emissions organization by 2050

• As the first leader in Thailand's real estate and retail sectors, the company is raising funds to drive the development of mixed-use projects and green buildings both domestically and internationally, aiming for a low-carbon society and making sustainability a reality
• The company has partnered with leading financial institutions UOB and ADB as advisors in creating a Sustainability-linked Finance Framework

Bangkok - Central Pattana plc, The leading real estate company in Thailand, recognized globally for sustainability, and the operator of Central shopping centers, residential properties, office buildings, and hotels nationwide, has become the first in Thailand's real estate and retail sectors to issue sustainability-linked bonds (SLB) with a total value of 8 billion baht. The funds will support projects related to renewable energy, sustainable water and wastewater management, energy efficiency improvements, and other sustainability-related projects for its operations or subsidiaries. These include various mixed-use projects, such as Central shopping centers, residential properties, office buildings, and hotels across the country, as well as future projects both domestically and internationally, in line with the company's planned initiatives

Ms. Naparat Sriwanvit, Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management for Central Pattana plc, said: "Central Pattana is committed to developing 'spaces' that enhance the quality of life for people, communities, and the environment, guided by the vision of 'Imagining better futures for all' under the role of a Place Maker. This involves connecting Place-People-Planet. The ESG Financing is part of the company's commitment to environmental care, or Better Planet, in line with the United Nations' sustainable development goals and the Journey to Net Zero by 2050. Our successful first issuance of sustainability-linked bonds and collaborate with the UOB, ADB and IFC in promoting sustainable development marks a significant step toward achieving carbon neutrality. It aligns with our commitment to building a sustainable future and supporting the growth of the ESG bond market in Thailand.

Jane Yuan Xu, IFC Country Manager for Thailand and Myanmar, said: "Sustainability is at the core of our work in Thailand, and we are proud to collaborate with Central Pattana in accelerating sustainable development in the country. Through sustainability-linked investments, we can contribute to supporting the nation's overall climate goals and promote sustainable growth for Thailand."

Vira-anong Chiranakhorn Phutrakul, Managing Director, Deputy CEO and Head of Wholesale Banking of UOB Thailand, said: ”As the Sole Lead Underwriter, UOB Thailand  is very pleased to be an integral part of the success of this landmark sustainability-linked bond issuance which we believe will pave the way for more sustainability-linked bond issues in Thailand. This achievement also demonstrates UOB’s commitment to ESG focus on achieving the Bank’s sustainability objectives of helping businesses to advance responsibly, steering consumer wealth to sustainable investments and fostering social inclusiveness and environmental well-being.”

Satoru Yamadera, ADB Economic Research and Development Impact Department Advisor, said: “This transaction demonstrates ADB’s commitment to fostering the growth of a sustainable bond market in Thailand. The successful issuance of CPN’s sustainability-linked bond is an excellent example of how the private sector can lead sustainable development and serves as a good example for other entities across the region.”

Central Pattana's Sustainability-linked Bonds are aimed at supporting projects that reduce greenhouse gas emissions, as well as projects or assets related to renewable energy, sustainable water and wastewater management, and energy efficiency improvements. These bonds help Central Pattana achieve its goal of becoming a net-zero greenhouse gas emissions organization by 2050. The bonds have a fixed interest rate of 2.86% per year, maturing in 5 years (by 2029), and a fixed interest rate of 3.14% per year, maturing in 7 years (by 2031). Interest payments will be made every six months throughout the bond's duration. The total issuance is 8 million units, valued at 8 billion baht. The bonds are issued under Central Pattana's Sustainability-linked Finance Framework, which aligns with the Sustainability-Linked Bond Principles (SLBP) established by the International Capital Market Association (ICMA).

The Asian Development Bank (ADB) served as an advisor in the development of the Sustainable Finance Framework, while UOB Thailand acted as the bond issuance manager, offering the bonds to both domestic and international institutional investors. The bonds received an overwhelmingly positive response from investors, with demand exceeding the offering amount by more than three times. They have been recognized as meeting global standards, with the International Finance Corporation (IFC), a member of the World Bank Group, serving as the anchor investor.

Central Pattana continues to advance its sustainability efforts in line with its "Journey to NET Zero 2050" plan. Key initiatives include:

• Green Building: Designing and developing real estate projects in accordance with green building standards, such as LEED, TREEs, and EDGE.
• Clean Energy: Installing solar rooftops on the shopping centers and parking lots, generating a total of 26,011 megawatt-hours of solar energy.
• Water Recycling: Implementing measures to reduce water usage, reuse water, harvest rainwater, and recycle water through the installation of water recycling systems, leading to a reduction in water consumption by 1.4 million cubic meters.
• Waste Diversion: Converting waste to reduce landfill by over 31,425 tons, meeting the set targets.
• Air Quality: Ensuring air quality meets standards and enhancing PM 2.5 reduction measures.

In addition, Central Pattana is collaborating with various partners and continuously launching eco-friendly campaigns. The company is committed to building strong and sustainable green alliances across all sectors.

As a result of its sustainability strategies, Central Pattana has been selected as a member of the Dow Jones Sustainability Indices (DJSI) in the DJSI World category for six consecutive years and in the DJSI Emerging Markets category for ten consecutive years. It has also been ranked #1 globally in the real estate management industry for sustainability by S&P Global.

For more details, please click https://www.centralpattana.co.th/en/shopping/shopping-update/lifestyle-activities