June 7 (Renewables Now) - The International Finance Corp (IFC) has subscribed to Thai-based TMB Bank’s (BKK:TMB) maiden green bond offering through a USD-60-million (EUR 50.8m) investment.
The World Bank’s unit is the sole investor of the bond, the aim of which is to provide financing for private sector investments in climate change related projects. “The pioneering green bond will provide an alternative source of long-term green finance in the country,” IFC said on Thursday.
Funds from the transaction will go for climate-smart projects, and renewables in particular, while for TMB the placement represents an expansion in the green finance space. The private lender aims to almost double lending for green projects to USD 470 million in the next five years. Meanwhile, the IFC estimates that Thailand’s annual climate financing gap exceeds USD 31 billion by 2030.
IFC noted that the placement will also help Thailand reach its goal of cutting greenhouse gas emissions by 20% by 2030 relative to its Business As Usual (BAU) scenario.
Separately, IFC will collaborate with the Monetary Authority of Singapore (MAS) to speed up the growth of green bond markets in Asia. Under a memorandum of understanding (MOU), the parties will implement a two-step plan to encourage green bond issuances by financial institution in the region.
(USD 1.0 = EUR 0.846)