CKP Issues ฿4,000Mn Worth of Debentures to Prepare for an Invest in Laos’ HPP

Mr. Thanawat Trivisvavet, Managing Director of CK Power Public Company Limited (CKPower or CKP), stated that the company has recently issued debentures (Non-subordinated, Unsecured with Bond Representatives type) of 4,000 million baht in total value to large firms and investors.

The debentures were divided into 3 sets: 1,000 million baht debentures with a tenure of 2 years at interest rates of 2.31% per year; 1,500 million baht debentures with a tenure of 3 years at interest rates of 2.62% per year; and 1,500 million baht debentures with a tenure of 7 years at interest rates of 3.76% per year. These sets of debentures were assigned a credit rating of “A-/Stable” by TRIS Rating Company Limited (TRIS Rating).

 

“The Company’s debentures drew a lot of attention from investors. We have received pre-orders 3.9 times more than the amount initially offered. On behalf of CKPower, I would like to express my appreciation and sincere gratitude to investors for their continuous support and confidence in our debentures,” said Mr. Thanawat.

As of November 30, 2020, CKPower will have issued a total of 10,500 million baht in debentures. However, the company still has an available capacity of 9,500 million baht to issue additional debentures to support future growth, although the company is yet to schedule the issuance of such debentures in a foreseeable future. With the issuance of these recently issued debentures included, CKPower will have the net interest-bearing debts to equity ratio (DE Ratio) of 0.72, which is considered low. This figure reflects the financial strength of the company.

 

Mr. Thanawat also stated that the purpose of issuing these new debentures is to pay off the outstanding debentures, which are due for payment in the first half of 2021, in order to reduce the average financial cost of CKPower and its subsidiaries and to prepare the company for future investment in new hydroelectric power plants in the Lao PDR. This effort reinforces CKPower’s leading role in the field of hydroelectric power plant development that is in line with the company’s investment policies and expectation on growth.

 

The company has been awarded an “outstanding” rating in performance evaluation from the Thai Institute of Directors (IOD) for three consecutive years as well as being selected as one of the 2020’s Thailand Sustainability Investment Index (THSI) from The Stock Exchange of Thailand (SET).

“This year, CKPower has been selected to join the 2020 Thailand Sustainability Investment list, an index of Thai public companies that have achieved sustainability standards under the supervision of the Stock Exchange of Thailand (SET), reaffirming the Company’s commitment to sustainable business practices and reflecting the greater emphasis that the Company has placed on sustainable business development which takes into consideration environmental, social, and governance (ESG) factors. The selection also bears testament to the CKPower Group’s strong commitment to sustainable business practices. Moreover, CKPower has received ‘Excellent’ rating by the Thai Institute of Directors (IOD) with support from the Stock Exchange of Thailand (SET) for three consecutive years as well as an ‘A/Stable’ organizational rating by TRIS Rating, reflecting the Company’s commitment to business operations with good corporate governance, ethics and transparency to all investors and partners as well as our responsibility to the society and the environment that continues to bring trust and confidence to our valued investors,” said Mr. Thanawat.