Bangkok: The Electricity Generating Authority of Thailand (EGAT) is pleased with the Sustainable Bond subscription total, with 6.576 billion baht offered, 3.29 times the offered amount. This marks the first state enterprise in Thailand to issue SLBs, driving the country towards carbon neutrality.
According to Thai News Agency, Ms. Patcharin Rapeepornpong, Deputy Governor for Finance and Accounting (CFO) of EGAT, revealed that EGAT, in collaboration with the Public Debt Management Office (PDMO), issued a 5-year Sustainability-Linked Bond (SLB) worth 2 billion baht with an annual interest rate of 1.40 percent. The bonds are not guaranteed by the Ministry of Finance, and Bank of Ayudhya Public Company Limited acted as the underwriter, registrar, and paying agent. The offering to institutional investors (II) was launched on September 15, 2025, and received an overwhelming response. Investors submitted a total of 6.576 billion baht in bids, exceeding the offered amount (bid coverage ratio) by 3.29.
The bonds are issued under the Sustainability-Linked Finance Framework, with the Asian Development Bank (ADB) serving as advisor and DNV (Thailand) Co., Ltd. serving as independent third-party reviewer. EGAT has set a sustainability target to reduce Scope 1 and Scope 2 greenhouse gas emissions per unit of electricity generation by at least 20 percent by 2028, equivalent to emissions of 0.4430 tCO2e/MWh, using 2021 as the base year. If EGAT achieves this target, the interest rate will be reduced by 0.05 percent, and if it fails, the interest rate will be increased by 0.05 percent.
EGAT is the first state enterprise in Thailand to issue SLBs, reinforcing EGAT's role as a mechanism driving the country towards carbon neutrality. It also helps build confidence among other state enterprises in the potential for sustainable fundraising, which can generate positive economic, social, and environmental impacts. This initiative demonstrates the positive response from Thai investors, both in terms of confidence in EGAT's sustainability goals, despite relatively lower returns than the market in its peer group. In the future, EGAT plans to raise funds through other sustainable financial instruments, as appropriate to market conditions and the readiness of its projects.