The International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging markets, is expected to provide around USD 150 million for new healthcare facilities in Thailand and renewable energy projects in Indonesia. The fund will be disbursed to RH International Corporation Pte Ltd, a wholly-owned subsidiary of Bangkok- based RATCH Group Public Company Limited. The commitment represents IFC’s first sustainable loan in Asia, and the first sustainable loan for an infrastructure company in Thailand.
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 has plans to expand its healthcare facilities to up to 20 hospitals in secondary cities across Thailand.
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. According to the IFC Country Manager for Thailand, there is a tremendous opportunity for Thailand to invest in infrastructure that creates a greener future and a more connected, and resilient society.
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.
(Sources: International Finance Corporation; RATCH Group)