The Asian Development Bank (ADB ) has announced that it will invest 5 billion Thai baht ($155 million) in one of Thailand’s largest private power producers, B.Grimm Power through 5-year and 7-year green bonds.

These green bonds are the first certified climate bonds to be issued in Thailand. The proceeds from the bond will help to finance renewable energy projects in Thailand. It will be reserved for nine operational solar power projects with a total capacity of 67.7 MW and seven solar projects under construction with a total capacity of 30.8 MW.

“This issuance will foster the development of the green bond market in Thailand by showcasing international best practice for genuine green and climate bonds. ADB’s support was invaluable to ensure the bonds comply with the International capital markets association green bond principles and climate bond Initiative standards,” said Preeyanart Soontornwata, President of B.Grimm Power in a media release.

“This green bond will help Thailand achieve its target of reducing greenhouse gas emissions by an unconditional 20 percent by 2030. B.Grimm is a pioneer of renewable energy and low-carbon growth in Thailand and increasingly across the region, and ADB is honored to be its long-term partner in this effort”, Michael Barrow, the director general of ADB’s private sector operations department said in a statement.

This is ADB’s second green bond project. In 2016, the bank extended a guarantee to support an issuance for the Tiwi and Makban geothermal power project in the Philippines. By 2030, 75 percent of ADB’s committed operations will support climate change mitigation and adaptation. The ADB has been among the frontrunner investors for projects combating climate change.

In June 2018, Mercom reported that ADB raised €600 million (~$702.80 million) to support climate change mitigation projects with the issue of a 7-year green bond.

Last year, ADB raised $47 million from a new issue of offshore Indian Rupee-linked bonds to finance climate change mitigation and adaptation projects in India.

In addition to ADB, numerous other agencies have issued green bonds in recent months.

Recently, the International Finance Corporation (IFC), a member of the World Bank Group, issued its inaugural Indonesian Rupiah Komodo green bond. The green bond issue has attracted strong investor demand and has raised $134 million to combat climate change.

In June 2018, IFC issued its first internationally rated triple-A peso-denominated green bond which is equivalent to $90 million. The bond, called Mabuhay Bond, supports local capital market and renewable energy with a maturity period of 15 years.

GuarantCo Ltd, a part of Private Infrastructure Development Group (PIDG), has also signed a deal with Singapore-based developer Sindicatum Renewables for $60 million worth of green bonds.

Here in India, the State Bank India (SBI) has raised the first tranche of $650 million through a maiden green bond offering, which is a part of its goal to raise $3 billion to fund renewable energy projects.