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AWC and SCB sign THB 20,000 million sustainability linked loan to integrate sustainability in mega project developments and strengthen Thailand as a global sustainable tourism destination
4 July 2023, - Asset World Corp Public Company Limited or AWC, Thailand’s leading integrated lifestyle real estate group, and Siam Commercial Bank or SCB signed a Sustainability Linked Loan and Green Loan valued at THB 20,000 million to develop quality AWC mega projects that will become mega global destinations, reaffirming their leadership commitment in conducting business in accordance with sustainable development. The agreement sets a new benchmark and will strengthen the real estate and tourism industries in reducing resource consumption and promoting energy efficiency in all dimensions, while creating value for all stakeholders. The loans will also support various initiatives to improve marine resource sustainability and future social development while enhancing Thailand’s position as a global sustainable tourism destination.
Mr. Kris Chantanotoke, Chief Executive Officer, Siam Commercial Bank (SCB), said that "The continuous investment by AWC, the leading real estate group in the country, is further evidence that Thailand’s economy continues to improve. SCB is fully aware of its role in driving sustainable development in all dimensions of Thai society, so we are delighted to provide THB 20,000 million in Sustainability Linked Loans and Green Loans for AWC. This loan aims to assist in the development of new projects and further the sustainability efforts of AWC. It also aligns with the bank's environmental mission, together with businesses under the SCBX group, to achieve a net-zero commitment of greenhouse gas emissions from its own operations by 2030 and from lending and investments by 2050. SCB is confident in the capability of AWC and these loans will help drive AWC’s growth through the development of numerous mega projects that will deliver unprecedented excitement to the real estate industry while supporting Thailand’s aspiration to become a global sustainable tourism destination.”
Mrs. Wallapa Traisorat, Chief Executive Officer and President of Asset World Corp Public Company Limited (AWC), said that "AWC is very impressed with SCB’s commitment and the shared vision in sustainability by issuing Thailand's first Sustainability Linked Loan for the real estate industry last year and also promoting sustainable growth in every sector. AWC is delighted to be a part of SCB's efforts to strengthen the country's real estate and tourism industry. The Company is committed to developing high-quality projects that will become sustainable mega projects. These include Asiatique the Riverfront Destination, the sustainable landmark by the Chao Phraya River in Bangkok, Aquatique, the mega project in Pattaya City Center, Woeng Nakhon Kasem, the cultural heritage center in Chinatown, and Lannatique, the mega project to promote the charm of Lanna art and culture in Chiang Mai City Center. AWC believes that the development of these projects to become global sustainability destinations will support the country's strategy to become a leader in global sustainable tourism.
AWC is committed to developing buildings that meet international green building standards, such as INNSiDE by Meliá Bangkok Sukhumvit, which has been certified by EDGE (Excellence in Design for Greater Efficiencies) standard, and InterContinental Chiang Mai Mae Ping, which has received LEED & WELL PRECERTIFIED, while other projects have already utilized the first SCB sustainability linked loan from last year. Through collaboration with leading financial institution partners, 75% of AWC’s long-term loans are now linked to sustainability. The Company aims to increase the proportion of long-term loans linked to sustainability to 100% in order to create a sustainable future for the country."
With the philosophy of ‘Building a Better Future’, AWC’s sustainable development framework consisting of the 3 pillars in 9 dimensions, or 3 BETTERs, which are 1) BETTER PLANET: Creating environmental value for a better environment, 2) BETTER PEOPLE: Creating social value for people to have a better quality of life and, 3) BETTER PROSPERITY: Creating economic value for a better economy. The properties under AWC have continuously implemented projects to support sustainable development, such as the crab bank project at Sheraton Samui Resort to increase biodiversity. At the Banyan Tree Krabi, the hotel has partnered with the Save Andaman Network Foundation for sustainable community tourism pilot projects. The reConcept business concept supports the circular economy by promoting the reuse and upcycling of old furniture, materials, and unused hotel decorations to reduce waste to landfill. The GALLERY aims to create jobs and generate income for the surrounding communities, as well as support local Thai entrepreneurs and artisans to create sustainable income opportunities.
Moreover, AWC has implemented the Energy Efficiency Plan (EEP) that supports efforts in accordance with the Sustainability Linked Loans and Green Loans. The plan aims to increase energy efficiency and reduce greenhouse gas emissions by installing solar panels on the rooftop of buildings, switching to energy-efficient lamps, and increasing air conditioning efficiency for its hotels that have been operating since 2019. In addition, AWC will develop projects in accordance with the framework for international green building standards certification, such as EDGE, LEED or WELL to drive sustainable development by efficiently using resources.
"This agreement signing reinforces AWC and SCB's shared vision for business operations. AWC will continue to implement its sustainability strategy to create long-term value for all stakeholders, the industry, community, society and the country under the mission of "Building a Better Future". We are ready to be an important part in driving Thailand to become a global sustainable tourism destination," Mrs. Wallapa added.
AWC has continuously operated under the sustainable development framework and has been recognized by leading domestic and international institutions. AWC received a “AA” rating from MSCI ESG Rating, and was listed in the Thailand Sustainability Investment (THSI) of the Stock Exchange of Thailand. The company was ranked in the S&P CSA Yearbook 2023 sustainability report for the second consecutive year, as a "Top 1% S&P Global ESG Score 2022" and received the “Industry Mover” award as a sustainable company in the hotels, resorts & cruise lines industry with Excellence CG Scoring. AWC is certified by Thailand's Private Sector Collective Action Coalition Against Corruption (CAC) and has been ranked as an organization with good corporate governance of listed companies in ASEAN (ASEAN CG Scorecard) since 2021.