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IFC provides Thailand’s First Sustainable Loan to RATCH Group for Investments in Hydropower and Affordable Healthcare

Bangkok, Thailand, July 12, 2021— Funding for new healthcare facilities in Thailand and for renewable energy projects in Indonesia are expected to flow from IFC’s $150 million financing for a sustainable loan to RH International (Singapore) Corporation Pte Ltd (RHIS), a wholly owned subsidiary of Bangkok- based RATCH Group Public Company Limited.

The commitment marks IFC’s first sustainable loan in Asia, and the first sustainable loan for an infrastructure company in Thailand, with proceeds expected to fund the company’s eligible green and social projects, including financing for hydropower in Indonesia.

With Thailand now battling a third wave of COVID-19, part of the funding from the sustainable loan will be used for building new hospitals in frontier regions outside Bangkok, through the RATCH Group’s equity investment in Principal Capital Public Company Limited (PRINC) hospital group. PRINC is at the forefront of providing essential services during the ongoing COVID pandemic and has plans to expand its healthcare facilities up to 20 hospitals in secondary city across Thailand.

The funding comes at a time when infrastructure companies are seeking to shift their businesses towards more sustainable models to support national targets and meet investor demand for profitable investments that also enhance its environmental and social value.

“RATCH is delighted to sign this first sustainable loan for an infrastructure company in Thailand with IFC, as it recognizes our commitment to sustainability and environmental responsibility, said Mr. Kijja Sripatthangkura, Chief Executive Officer, RATCH Group Public Company Limited. “Meeting IFC’s high standards validates RATCH’s ‘green energy’ strategy, which includes producing 2,500-megawatts renewable energy by 2025 as we add solar, hydro, wind, and biomass power to our energy portfolio.”

With the sustainable loan, IFC hopes the investment will send a clear signal to the market, demonstrating the value of sustainability investments, and spur more similar investments.

“As the recovery slowly begins, there is a tremendous opportunity for Thailand to invest in infrastructure that creates a greener future and more connected, prosperous and resilient society, said Yuan Xu, IFC Country Manager for Thailand and Myanmar. “IFC’s loan will help RATCH in building a more sustainable business model, and further diversify the company’s funding base amid growing interest from investors for climate finance transactions.”

Aside from the long-term financing, IFC has been helping RATCH articulate its sustainability strategy and develop a Sustainable Finance Framework as it expands its reach into renewable and other social infrastructure sectors in Thailand, as well as non-infrastructure projects in other emerging markets. The Sustainable Finance Framework is developed in accordance with the Green Loan Principles (GLP) and the Social Loan Principles (SLP) as administered by the Loan Market Association and will help RATCH raise further financing to support its growth in green and social projects.

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