Bangkok--21 Oct--Twin Pine Consulting
Twin Pine Consulting Co., Ltd., a regional financial advisory firm with focus on South East Asia, is paving the way for EDL-Generation Public Company (EDL-GEN), a major operator of hydroelectric power plants in Lao PDR, to raise fund in the Thai market in compliance with new regulations from the Public Debt Management Office (PDMO), credit assessment by TRIS Rating has been done to further reinforce investor confidence.
Mr. BounOum Syvanpheng, Managing Director & CEO of EDL-Generation Public Company, said, “EDL-GEN is a major operator and seller of electricity in Lao PDR with seven hydroelectric plants under its ownership, plus investments in four additional IPP (independent power producer) facilities. The company is capable of producing 881 megawatts of power in total (as of December 31, 2013) and is currently selling the electricity to Electricite Du Laos (EDL), who in turn supplies power for the Electricity Generating Authority of Thailand (EGAT). Lao PDR plans to develop itself into an industrial base by increasing industrial contribution to economic growth, which means that the country’s electricity demand is likely to increase. Additionally, neighboring countries like Thailand, Vietnam and China have expressed interest in importing power from the Lao PDR in greater capacity each year. In response to these trends, EDL-GEN plans to add ten additional hydroelectric plants in the country within three years – a venture that would require at least six to eight billion baht in additional capital. EDL-GEN has appointed Twin Pine Consulting as an advisor to develop a capital raising strategy that will achieve this goal within 2014.”
“EDL-GEN is a company with staggering potential for growth thanks to stable revenue streams, low debt-to-capital ratio, strong domestic customer base, and significant demand from overseas markets because the price of electricity from hydropower is lower than others ,” said Mr. Adisorn Singhsacha, Managing Director of Twin Pine Consulting, the financial advisor of EDL-GEN. “These factors make for a highly attractive investment proposition, which is why Twin Pine has invited EDL-GEN to raise new capital in the Thai market. EDL-GEN itself can expect to benefit from greater awareness among investors while the presence of another large private company seeking additional capital from Thailand would only add to the country’s potential asthe regional capital hub. Twin Pine Consulting and EDL-GEN has been working closely and has obtained a credit rating from TRIS Rating and we are fully complied guidelines from the Public Debt Management Office (PDMO).”
Dr. Santi Kiranand, President of TRIS Rating Co., Ltd., added: “We are providing EDL-GEN with credit rating services that will supply investors with insight into EDL-GEN bonds as well as the company itself, thus providing them with greater confidence. As CRA, TRIS Rating had carried out the process with complete transparency. We had conducted a thorough analysis of EDL-GEN’s risk factors in four aspects – namely Lao PDR’s country risks from fiscal policies and public debt, trends influencing the growth, demand, supply, competition and regulation of the Lao electricity generation industry, risks related to EDL-GEN’s business management – including its business model, management expertise, growth strategy, return on investment and market share – and lastly financial risks such as potential profitability, policy on dividend payouts, debt level, liquidity, capital, and more.”