SUPER Runs Money Game, Lending Money Borrowed from BBL to KT for 20-Year Sales Agreement
SUPER used the money borrowed from BBL as financial support for Krungthep Thanakom in exchange for an agreement to purchase waste in Bangkok to feed its power plants.
On March 4, 2019, Super Energy Corporation Public Company Limited (SUPER) announced that the company, through its subsidiary, had offered a loan (Sponsor Loan Agreement) to Krungthep Thanakom Co., Ltd. (KT) for a total of THB 2,025.9 million to invest in Engineering Procurement and Construction (EPC) project of community waste management at onnut solid waste Disposal Center.
The condition in this loan is that SUPER must get loan approval from Bangkok Bank Public Company Limited (BBL) not less than or equal to the amount that the company will provide financial assistance to Krungthep Thanakom Company Limited while the interest rate must be lower than the benefits provided to Krungthep Thanakom Company Limited.
SUPER would receive main raw materials in the power plant project as RDF (Refuse-derived Fuel) processed waste, which is beneficial in business with waste power plants using RDF of processed waste. SUPER also had a sale agreement with Krungthep Thanakom Company Limited to purchase RDF at a price of 642 baht/ton for the period 20 years, which would save SUPER’s cost by 35%. This is a backward integration from SUPER to own the supply as these materials from Krungthep Thanakom are the main components used in the operating of waste power plants.
