The Asian Development Bank (ADB) is assisting the Government of Thailand in designing, issuing, and monitoring innovative capital market initiatives as part of the country’s recovery from the coronavirus disease (COVID-19) pandemic in a manner aligned with the 2015 Paris Agreement and the UN Sustainable Development Goals.
ADB’s technical assistance through the Association of Southeast Asian Nations’ (ASEAN) Catalytic Green Finance Facility (ACGF) includes bond framework development and external reviews to help Thailand’s Ministry of Finance (MOF) and National Housing Authority (NHA) design green, social, and sustainability bonds based on global and ASEAN standards and best practices. ADB is also helping the government develop internal systems to monitor the use of bond proceeds and prepare post-issuance reports. These measures will help lay the groundwork for more green, social, and sustainability bond issuances.
ADB also supported the NHA’s maiden social bond, which was issued on 23 September in three tranches totaling THB6.8 billion. It is among the first social bonds issued by a state-owned enterprise in Southeast Asia. The bond will finance affordable housing in Thailand and promote sustainable communities. Other green and sustainability bonds are in development.
“We are delighted to support these pioneering initiatives by the Government of Thailand,” said Country Director of ADB Thailand Resident Mission Hideaki Iwasaki. “These social and sustainability bonds will help the country recover from COVID-19 by focusing on long-term, green, and inclusive infrastructure.”
“As countries face an increasing financing gap for climate-resilient infrastructure, especially following the COVID-19 pandemic, it is essential for governments to tap into domestic and global capital markets with green and sustainability bonds,” said ACGF Unit Head Anouj Mehta.
Read the full article at India Education Diary: https://indiaeducationdiary.in/adb-supports-thailands-green-social-and-sustainability-bonds-for-covid-19-recovery/