7 October 2019: B.Grimm Power Public Company Limited (BGRIM), the leading private power producer in Thailand, prepares to issue THB 6 billion Subordinated Perpetual Debentures and THB 2 billion Green Shoe Option to the public investors during 19-21 November 2019, with a coupon of 5.00% per annum for the first 5 years.
TRIS has assigned a company rating of “A” with a “Stable” outlook and an issue rating of “BBB+” with a “Stable” outlook. The company has appointed Bangkok Bank, Krungthai Bank, KASIKORNBANK, Siam Commercial Bank, Phatra Securities, and Asia Plus Securities to be the arrangers.
Ms. Preeyanart Soontornwata, President of BGRIM, the leading private power producer in Thailand reveals that the company has recently submitted a filing to the SEC to seek for an approval to issue and offer its first Subordinated Perpetual Debentures to the public investors in the amount of THB 6 billion, with THB 2 billion Greenshoe Option.
The debentures, of which coupon will be 5.00% p.a. during the first 5 years, are expected to be available for subscription during 19-21 November 2019. The key purpose of the issuance is to get the company’s capital ready for the upcoming business expansion opportunities.
“BGRIM has been beating investors’ expectation since its IPO in 2017, with the capability to develop and operate private power plants of all sorts, in and outside of the country. We have expanded from 30 power projects with 1,646 MW installed capacity to 45 projects with 2,892 MW installed capacity in the course of just 2 years. We have also just commenced 2 Solar Power Plant Projects in Vietnam with 257 MW and 420 MW installed capacity, regarded as the largest Solar Power Plant project in ASEAN, and a Hydro Power Plant in Laos. And now, we are exploring opportunities to invest in South Korea, Malaysia, Cambodia, and the Philippines as well.” says the President.
BGRIM is one of the core businesses under the B.Grimm group, which has been leading and pioneering Thailand’s infrastructure development for over 140 years. BGRIM, with its businesses, focused on electricity generation and has been operating in Thailand for more than 20 years, is also the first private power producer in Thailand.
Currently, its power plant projects are approximately 75% domestically and 25% overseas and aims to expand production capacity to 5,000 MW in 2022. From the present, there are 56 projects on hand including operating and developing power plant projects with total installed capacity 3,245 MW that will COD within 2025.
The strengths of BGRIM, apart from its business being crucial infrastructure for economic development, are the stable cash flow from long term contract with the state-owned enterprises including EGAT, PEA, MEA, EDL and Electricity of Vietnam (EVN) under the Small Power Producer program (“SPP”), the diversification of power plants, and the proven track record in power plant development and management. This leads to the company being rated ‘A’ with a ‘stable’ outlook by TRIS rating, in which its subordinated perpetual debentures are rated ‘BBB+’.