Is SCB’s Clarification Telling the Whole Involvement with Wind Energy?

Wind Energy Holding Co., Ltd. may be the name that every investors are familiar with from the rumors of involving SCB in their dispute inside the company.

Questions have been raised just a few days after The Siam Commercial Bank Public Company Limited (SCB) denies their involvement with Wind Energy Holding Co., Ltd. (WEH)’s shareholders dispute.Currently, the issue has enter the court both in Thailand and foreign countries.


The clarification letter from SCB said:

“The Siam Commercial Bank Public Company Limited or SCB gives a statement on the matter of involving Wind Energy Holding Co., Ltd. (WEH)’s shareholders dispute that, as of now, SCB had approved the loan for WEH’s 8 projects. Three of the projects had been commercialized, and the borrower had settled the loan as agreed upon.

As for the other five projects that are in the process of construction, SCB approved the loans after reviewing the possibility of success on each project, the continual of construction, cash flow and the potential of loan settlement, along with collateral assets, which met all of the bank’s conditions.

Regarding the dispute with WEH’s shareholders, SCB has no involvement with the current dispute between the original shareholders and the new shareholders, because SCB did not take WEH’s shares as collateral assets. Also, SCB has no intention to approve a loan to the new shareholders to pay off their debts from the share purchase agreement with the original shareholders. As to the dispute in the new shareholders’ family, the company also has no involvement at all.

In addition, the approval of all WEH’s 8 projects correspond to the government’s policy to support the clean energy business as an important basic structure for the country. To conclude, SCB asserts that the circulating news about SCB’s involvement in the dispute has been misinformed.”


To sum up, SCB only asserts that the involvement with WEH is only with the project financing, including the five remaining projects that SCB has approved a total of 37,235 million baht loan to WEH.

Suspicions are aimed at the loan approval of 37,235 million baht that someone accidentally and legally picked up. The first document somewhere around Ratchayothin and the second one at Rama 8th Bridge (two opposite sides of the city!?).

The documents are addressed to very important persons in SCB including Mr. Arthid Nanthawithaya, CEO, Mr. Anand Panyarachun, Chairman of the Board and Independent Director, and Mr. Boontuck Wungcharoen, Chairman of the Board and Independent Director. The documents are also carbon copied, with Mr. Veerathai Santiprabhob, Governor of Bank of Thailand, in the addressee, too.

But there is something that has not been revealed to the public. Something that has been written in the documents addressing SCB’s officers and the governor of Bank of Thailand. It seems like someone or some group of people are protecting the information contained in this document  with all of their effort.

A project financing means that all the loan will be transfer directly to support a certain company’s project. However, if the loan has been allotted to purchase some assets, we would not call it a “project financing”, would we?

There is a line stated in the documents saying that the total of 37,325 million baht loan from SCB, 26,367 million baht is alloted for financing the 5 projects and 10,958 million baht for WEH’s capital fund on all 5 projects.

….. This is “Equity Financing” not “Project Financing”!!


For this reason, SCB should have made another statement to give a proper clarification to this matter. Otherwise, this may lead to an “intentional withholding of information”, and mislead the shareholders and related parties.

Meanwhile, some people spot that 26,367 million baht is considered 75% of the overall “project financing” loan, so why is there an additional capital fund loan of 10,958 million baht when this number exceeds the remaining 25% by 2,169 million baht?

Well, where did this 2,169 million baht go?

A suspicion on excess loans is one thing, while considering that WEH has been developing these 5 projects since 2008!!

That means there is a certain amount that WEH had invested in these projects more or less. This amount can be used to deduct from the amount that WEH needs to get a loan for increasing capital fund from SCB.


Now, there needs to be a clarification on the amount of 10,958 million baht that SCB approved to WEH as “Equity Financing”. What happened to the excess loan of 2,169 million baht and the amount that WEH has already invested in the projects. (around 2 billion according to the documents)?

Where is the money, then? Who? And what for?

The truth is believed to be known by SCB and the governor of Bank of Thailand.

This factor may be a part of the current WEH’s shares dispute, causing a legal advisor on deal diligence to disagree on the SCB’s loan.

Lastly, according to the statement that SCB asserts that the bank has no part in the dispute of the original shareholders (fugitive in foreign countries) and the new shareholders (those who have overdue payments). We may come to a conclusion that from now on, the approval from the bank will no longer need an owner background or any document to support the loan.

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