East Water, a pioneer in developing and managing major water pipelines in Thailand, is issuing its first blue bond amounting to 620 million baht ( US$19.10 million ) that will help secure reliable access to water supply in the country’s Eastern Economic Corridor ( EEC ) and improve Thailand’s overall water resource management.

The issuance, announced on August 18, is supported by the International Finance Corporation ( IFC ), along with other institutional and high-net-worth investors from Thailand, which subscribed to the offering.

The proceeds are earmarked to support East Water to free up cashflows and continue investing in maintaining the quality of its extensive 553-kilometre water transmission network – which is the longest in Thailand and the most integrated in the EEC region – linking multiple government-owned reservoirs, rivers and private reservoirs.

East Water is a pioneer in developing and managing major water pipelines in Thailand and is the largest private sector company supplying water in the EEC region. The investment also represents the IFC’s first blue financing investment in the infrastructure sector in Asia Pacific.

The IFC’s investment, says Jane Yuan Xu, its country manager for Thailand, will enable a continuous flow of water into the EEC, a leading industrial and business hub in Thailand, providing raw, tap and industrial water for businesses and households throughout the region and supporting livelihood, growth and job creation.

The EEC currently has 27 industrial estates that are its promotional zones, and the corridor is a key part of the government’s Thailand 4.0 strategy to achieve a high-income status by 2036. This comes with the expectation of hosting all key growth industries in industrial and digital sectors, and creating 200,000 jobs and accommodating 350,000 people by 2032.

The blue bond offering, notes Bordin Udol, East Water’s president, is part of the company’s commitment to improve the quality and supply of water and ultimately contribute to increased water security in Thailand. “East Water appreciates that the IFC values us as a strategic partner to deliver increased water security to the region,” he adds. “As a key regional hub for industries, the EEC remains a vital source of livelihood for many Thais.”

Since the creation of the Blue Finance Guidelines in 2022, the IFC has been actively supporting the blue economy and helping channel more investments into ocean preservation and water management activities across the globe. Supporting East Water to issue its inaugural blue bond, the IFC shares, is part of its commitment and strategy to continue promoting the blue economy in the Asia-Pacific region.