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.
About IFC
IFC is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
About RATCH Group
RATCH Group Public Company Limited (formerly named Ratchaburi Electricity Generating Holding PCL.), a leading value-oriented energy and infrastructure company in Thailand and Asia Pacific, was established on March 7, 2000, with registered capital of 14.5 billion baht. The Electricity Generation Authority of Thailand (EGAT) is the major shareholder holding 45% stake. As a holding company, RATCH Group seeks for investment in subsidiaries, and joint ventures in power, infrastructure and power and energy-related businesses. At present, the company has operational base in Thailand, Lao PDR, Australia, China, Indonesia and Vietnam. RATCH has enjoyed considerable recognition for its sustainability efforts. In 2020, the company received the Best Local Currency Green Bond award from the Asset Triple A Sustainable Capital Markets Regional Awards in the category of Renewable Energy/Transition Energy, as well as the Deal of the Year award and Environmental, Social and Governance Bond (ESG Bond) award in the Thai BMA Best Bond Awards 2020. The Thailand Greenhouse Gas Management Organization (TGO) certified carbon credits for RATCH's Thailand Voluntary Emission Reduction projects on energy efficiency, solar floating and sustainable forest. RATCH also listed in the Stock Exchange of Thailand's Thailand Sustainability Investment (THSI) for the sixth consecutive year in 2020, along with the Thaipat Institute's Sustainability Disclosure Award for the second consecutive year. Learn more about RATCH Group, visit www.ratch.co.th.
