Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) has announced that RH International (Singapore) Corporation Pte. Ltd. (RHIS), RATCH’s wholly-owned indirect subsidiary, had subscribed to a portion of, and had purchased from Fareast Green Energy PTE. LTD., the existing shareholder, ordinary shares in Fareast Renewable Development Pte. Ltd. (FRD) in Singapore. The subscription is to participate in the operation of Asahan-1 Hydroelectric Power Project (Asahan-1) in the Republic of Indonesia.
As a result, RHIS holds a total of 50% of the ordinary shares in FRD. The investment value is approximately $81.89 million or equivalent to approximately ฿2,690 million. The purchase price was paid and the share issuance and share transfer were registered on December 6, 2018. The aforementioned transactions create a formation of a strategic alliance for other hydropower electricity project development in Indonesia.
After the transactions, each of RHIS and Farest Green Energy has 50% equity interest in FRD. The shareholding structure of Asahan-1 comprises FRD at 53.21% (RATCH held an indirect stake through RHIS and FRD at 26.61%), PT Pembangkitan Jawa Bali (a subsidiary of PLN) at 36.61%, International Finance Corporation (IFC) at 5.00% and other shareholders.
Asahan-1 Hydroelectric Power Project is a run-of-river hydroelectric power plant with the generation capacity of 180MW. It is located in Asahan River, North Sumatra province in Indonesia. It has commenced commercial operation since January 2011 and has 30-year power purchase agreement ending on December 31, 2040 with PT PLN (Persero) (PLN).