15 October 2024
Central Pattana, led by Ms. Naparat Sriwanvit (2nd from left), Chief Financial Officer and Senior Executive Vice President, Finance, Accounting and Risk Management, has partnered with Krungsri, led by Mr. Prakob Phiencharoen (2nd from right), Head of Corporate and Investment Banking Group, along with Mr. Hirotaka Kuroki (left), Head of Global Market Group, to advance their ambitious sustainability goals through Sustainability-Linked Loans, and Sustainability-Linked Derivatives. This strategic financial collaboration aligns with the shared mission of Central Pattana and Krungsri to achieve net-zero emissions by 2050.
Bangkok (15 October 2024) – Central Pattana Public Company Limited “Central Pattana”, the leading property development company in Thailand has partnered with Krungsri (Bank of Ayudhya PCL) to advance their ambitious sustainability goals through Sustainability-Linked Loans, and Sustainability-Linked Derivatives. This strategic financial collaboration aligns with the shared mission of Central Pattana and Krungsri to achieve net-zero emissions by 2050.
As part of this collaboration, Krungsri has arranged a Sustainability-Linked Loan of THB 2,850 million including Sustainability-Linked Derivatives, aligned with Central Pattana’s long-term environmental goals to allocate 30% of its debt financing toward ESG financing. These financial solutions will form a key foundation for various initiatives, such as reducing Scope 1 and 2 greenhouse gas emissions, embracing renewable energy, and developing green buildings across Central Pattana’s properties.
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 creating “spaces” that enhance the lives of people, communities, and the environment through the vision of “Imagining better futures for all.” We continue to advance sustainability according to the Journey to NET Zero 2050 plan. Sustainable finance (ESG Financing) is another key strategy for driving positive change. We commend Krungsri for leading the transition towards sustainable finance and thank them for their steadfast and long-term support.”
Mr. Prakob Phiencharoen, Krungsri Head of Corporate and Investment Banking Group, said: “It is an honour for Krungsri to continue supporting Central Pattana following their successful green loans transactions in 2022-2023, now through this Sustainability-Linked Loan. This initiative reaffirms Central Pattana’s clear commitment to sustainability, positioning it as Thailand’s leading real estate developer and a role model for integrating ESG principles across all sectors. This loan not only strengthens Central Pattana’s sustainability goals but also aligns with Krungsri’s dedication to expanding our social and sustainable finance portfolio, targeting to achieve 100,000 million baht by 2030. We are excited to continue this journey together and to support the broader adoption of sustainable practices.”
Mr. Hirotaka Kuroki, Krungsri Head of Global Market Group, said: “We are proud to introduce Sustainability-Linked Derivatives as part of our collaboration with Central Pattana, marking their first-ever Sustainability-Linked Derivatives transaction. This product is designed to help clients manage interest rate risks associated with loans while also providing benefits based on their achievement of ESG goals. The success of this product offering resulted from the collaborative efforts of various sectors within Krungsri to integrate financial products that promote sustainability, both in terms of Sustainability-Linked Loans and Sustainability-Linked Derivatives. This has enabled us to offer financial solutions that align with Central Pattana’s carbon reduction goals and reinforce their sustainable growth.”