GPF continues to support sustainable businesses by investing in THB 4 billion green debentures of RATCH Group which will be used for developing environmental conservation projects and renewable energy projects in response to carbon neutrality and zero greenhouse gas emission goals.
Mr. Songpol Chevapanyaroj, Secretary General of the Government Pension Fund (GPF), revealed that as the institutional investor that places importance on responsible investment, GPF focuses on businesses integrated governance, environmental and social materials into their operations and consistently looks for investment opportunities in reasonable returns assets. Therefore, it has invested in two tranches of RATCH’s environmental conservation debentures, or green debentures with a total value of THB 4 billion, comprising a 3-year term at a 2.81% interest rate, and a 5-year term at a 3.00% interest rate.
The subscription of RATCH's green debentures is considered as low-risk investment and gaining good returns because RATCH has stable profits, an acceptable debt service coverage ratio (DSCR), and an AA+ company credit rating. Also, RATCH participates in developing projects related to environmental conservation and pays more attention to Environmental, Social and Governance issues, particularly including clean energy and renewable energy, as well as conducting business concerning stakeholder inclusiveness in all aspects, which is in line with the GPF's investment targets focusing on not only economic return but also sustainable social and environmental returns.
Mr. Nitus Voraphonpiput, Chief Executive Officer of RATCH Group Public Company Limited, said that we have issued and offered GPF for two tranches of green debentures with a total value of THB 4 billion. These are name-registered, unsubordinated, and unsecured debentures without a Debentureholders’ Representative, and offered to a private placement to no more than 10 investors (PP10). The first tranche amounted THB 2 billion with a 3-year term, due in 2027, at a 2.81% interest rate, and THB 2 billion for the second tranche with a 5-year term, due in 2029, at a 3.00% interest rate. RATCH will pay interest every 6 months and debenture’s principal will be redeemed on the maturity date. We are very pleased on GPF’s trust and confidence in our commitment on good corporate governance to driving our steady growth and strength enabling us to create economic value as well as shared values for society and the environment consistently.
In addition, the company has announced a carbon neutrality goal by 2050 by focusing its investment on renewable and energy transition related projects. It targets 40% of renewable energy production capacity increasing in 2035 from the current 27% of total equity capacity. This success also reflects institutional investors’ confidence in Thailand’s private sector bond market, particularly debentures issued by corporates having strong business and financial fundamental, high growth potential, and embed good governance practice.
“The green debenture was exclusively offered to GPF and it is very thankful for supporting in both series of the company. The proceeds will be used under the Green Financing Framework, both as working capital and/or to replace funding of new or existing projects related to environmental conservation and renewable projects of RATCH and subsidiaries. The Company has set a clear investment plan and target for renewables, including solar power projects, wind power projects, hydropower projects, and energy storage systems, as well as studying future energy technologies to support energy transition and power generation development plans of the company targeted countries with an aim to create sustainable growth along with responding to energy security and the goal of carbon neutrality and/or zero greenhouse gas emissions of all our investment-based countries,” said Mr. Nitus.