Bangkok--28 Feb--Ratchaburi Holding
- Decrease cost of funds and increase liquidity of business operations
- To issue debentures and B/E approximately in March 2011
Ratchaburi Electricity Generating Holding Public Company Limited (Ratchaburi Holding), reported that the company will decrease its cost of funds by issuing debentures and bills of exchange of Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN), a wholly-owned subsidiary of Ratchaburi Holding with a total amount of 16.11 billion baht in order to refinance its total amount of loan outstanding.
Mr. Noppol Milintanggoon, President of Ratchaburi Holding, said that the company is refinancing the debt of Ratchaburi Electricity Generating Co., Ltd., its subsidiary company which operates Ratchaburi Power Plant by issuing debentures and bills of exchange, with a total amount of 16.11 billion baht and a maximum term of 4 years. Siam Commercial Bank (SCB) is the underwriter of these instruments. The financial instruments will be sold to institutional investors and high net worth via private placement and the issuance and offering is expected to commence in March. The refinancing is in line with the company’s financial management plan with an aim to enhance the efficiency and flexibility of its future operations. The proposed interest rate is anticipated to be lower than the company’s current rate of debt.
The debentures are senior and unsecured debentures (without debenture holder representatives) with a maximum term of 4 years. Book building is being undertaken to explore investors’ interest in buying debentures to determine the appropriate interest rate and this will be finalized soon.
RATCHGEN is 99.99% owned by Ratchaburi Holding and it operates and runs the Ratchaburi Power Plant that has a total installed capacity of 3,645 megawatts. The Electricity Generating Authority of Thailand (EGAT) has a 25 year power purchase agreement with RATCHGEN. TRIS Rating affirmed the company’s rating of RATCHGEN at “AA”. The rating reflects RATCHGEN’s stable cash flow from its Ratchaburi Power Plant, which has solid and strong infrastructure and is fully embedded with innovative technology while demonstrating its many years of extensive experience and its highly acclaimed power plant management record.
For more information, please contact
Public Relations Department, Ratchaburi Electricity Generating Holding PCL.
Wiwan Phayakvichien and Nuannang Changadveja
Tel: 0 2794 9941, 0 2794 9944 E-mail:
[email protected]