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BGRIM debenture funds allocated to green energy drive

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Not only was B Grimm Power Pcl’s (BGRIM) initial primary eight-billion baht ($240 million) ‘Green Bond’ offering plan fully subscribed, the doubling of greenshoe options to four billion baht were snapped up as well. SUPPLIED

BGRIM debenture funds allocated to green energy drive

B Grimm Power Pcl (BGRIM), Thailand’s leading industrial energy producer with growing overseas presence, has hailed its green debentures offerings as a great success.

Investors’ response to BGRIM’s “Green Bond” offering was electrifying that not only the initial primary eight-billion-baht ($240 million) offering plan was fully subscribed, the doubling of greenshoe options to four billion baht were snapped up as well.

The demand for the debentures, gauged by the so-called Book Building process, was more than five times the initial offering plan of eight billion baht, with some debenture tranches in the overall package being 10 times over the set portion.

BGRIM chairman and president Harald Link said the overwhelming response to the 12-billion-baht fundraising is truly remarkable at the time when the capital market has been depressed by the Covid-19 pandemic.

“The investors’ keen interest is a sheer vote of confidence in BGRIM’s business and its green energy drive in which these debentures are about,” he noted.

BGRIM’s debentures were taken by institutional investor groups including life insurance companies, asset management firms, government funds, cooperatives, and other financial institutions.

The BGRIM debentures come in three tranches – two billion baht for a three-year maturity with interest rate at 1.41 per cent per annum, three billion baht in “Green Bond” with a five-year maturity and interest rate at 1.95 per cent per annum, and seven billion baht due in 10 years with interest rate at 3.20 per cent per annum.

Proceeds from the five-year tranche designated “Green Bond” will go towards the development of BGRIM’s two solar farm projects in Vietnam and a wind energy venture in the northeastern Thai province of Mukdahan.

The Vietnam schemes, located in Phu Yen and Tay Ninh provinces with a combined generating capacity of 677MW, will take 87 per cent of the proceeds while the 18MW Mukdahan facility receiving the remaining 13 per cent.

BGRIM’s Green Bond is verified to conform with the Climate Bonds Standard to ensure the best practice standards for climate integrity, management of proceeds and transparency.

All three debenture varieties were rated “A-” with a “stable” outlook by TRIS Rating Co Ltd on June 29.

The debentures were offered to institutional and or high net worth investors on July 2-5 with debentures being issued on July 6.

Bangkok Bank, Kasikorn Bank and Kiatnakin Phatra Securities Pcl acted as underwriters of the debentures.

Link expressed gratitude for investors’ keen interest in BGRIM’s debentures and unrelenting supports.

The company will earmark the proceeds from the debentures to repay existing debts, investing in projects and using them as working capital.

The debentures offered this time bear reasonable costs and would lay an investor base for future debenture offerings.

Supports from investors this time endorse their confidence in BGRIM for its strong performance, highly experienced management team and leadership in the core business of producing and selling electricity and steam with top global standards.

BGRIM has been conducting its businesses under the slogan of “Empowering the World Compassionately”, by extending generosity, values to the society and growing alongside Thailand.



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