BGRIM’s Perps Achieve ฿8bn Offering, Paving Ways for Further Expansions in the Business!

B.Grimm Power Public Company Limited (BGRIM), Thailand’s leading private power producer, has made an announcement that it has successfully closed the offering of its very first subordinated perpetual debentures (perps) with the total offering amount (including greenshoe option) of THB 8 billion.

BGRIM has asserted that the confidence in the company’s financial strength and credible business expansion plan leads to strong demand from investors which the company decides to accommodate by exercising the Greenshoe option.

 

Ms. Preeyanart Soontornwata, the President of BGRIM, said that the major reason for such a great feedback from investors, apart from the subordinated perpetual debentures’ attractive interest rate, is the investors’ confidence in BGRIM’s financial strength and business expansion plan which BGRIM has always delivered.

“We would like to express our appreciation to the investors and the Joint Lead Arrangers, comprising Bangkok Bank, Krungthai Bank, Kasikornbank, Siam Commercial Bank, Phatra Securities and Asia Plus Securities, who give us full support to make this offering successful.

We are also proud and honored that our first subordinated perpetual debentures are well-received by both retail and institutional investors, and also by Foundations. This shows the great confidence in BGRIM’s financial strength, sustainable business practice, and our expansion plan which will continue to be a part of Thailand’s infrastructure development. This issuance of the subordinated perpetual debentures will help strengthen our financial profile which will enable us to grow our business at its full potential, in line with our strategic expansion plan.” Preeyanart said.

 

BGRIM is one of the core businesses under B.Grimm Group, which has been established in Thailand for over 140 years, and has been a pioneer for investment in many infrastructure projects. BGRIM is also among the first private power producers in the country and has operated in the power business for more than two decades.

As of now, approximately 75% of BGRIM’s power capacity comes from its power plants in Thailand, and 25% from overseas. The company has strategic plans in order to boost its power capacity to 5,000 megawatts by 2022.

BGRIM currently has 56 power plant projects, some of which are in the construction and development stage which will have a total capacity of 3,245 megawatts and will be fully operational by 2025.

Most recently, the company signed an agreement with Petro Vietnam Power to jointly develop a 3,000-megawatt LNG power plant and an import-and-distribution project for the LNG to be used as energy for power plants in Vietnam.

The LNG power plant is divided into the existing 1,500-megawatt facility, located in Ca Mau province and operated by Petro Vietnam Power since 2014, and the new second-phase investment in a 1,500-megawatt power plant. The second plant will also be in the same area.

“Moreover, we are looking to expand our investments in potential markets overseas, especially in a country where there is potential demand for electricity including Vietnam, Cambodia and other Asian countries. This opportunity will contribute to future revenues and will be a significant driver for the company’s power capacity to reach 5,000 megawatts by 2022 as targeted,” Preeyanart said.