ADB invests $155m in B.Grimm Power's maiden green bonds

It will finance 16 solar plants, with nine operational and seven under construction.

The Asian Development Bank (ADB) will invest $155m in the maiden five-year and seven-year green bonds in Thailand's B.Grimm Power. These are the first certified climate bonds to be issued in Thailand.

According to an announcement, the proceeds will be earmarked for nine operational solar power plants with a total capacity of 67.7MW and seven solar plants under construction in Thailand and with a total capacity of 30.8MW.

“ADB’s support was invaluable to ensure the bonds comply with the International Capital Markets Association Green Bond Principles and Climate Bond Initiative standards, building on a long-standing relationship we have forged through multiple transactions,” said B.Grimm Power CEO Preeyanart Soontornwata.

The investment is in line with Thailand's target to cut greenhouse gas emissions by an unconditional 20% by 2030, ADB private sector operations department director general Michael Barrow added.

It is also part of ADB's new Strategy 2030, which mandates that at least 75% of the number of ADB’s committed operations will support climate change mitigation and adaptation by 2030. Climate finance is expected to reach $80b over 2019–2030.