Bangkok--2 Feb--KASIKORNBANK
KASIKORNBANK extended a total 3-billion-Baht syndicated loan to the power state enterprise of Lao PDR to finance its electricity network enhancement and expansion into the country's rural areas, as well as power exports to adjacent countries. The move marks KBank's growing role in public utility development of our neighboring countries, where there is vast room for further improvement.
Mr. Patchara Samalapa, KBank Senior Executive Vice President, said KBank is aware of the economic opportunity and potential of Lao PDR, where public utility development is needed to serve its rapid expansion. One area with potential is the electricity industry, in which the country stands out as one of ASEAN's major producers and exporters. This makes the building of related infrastructure an important step towards the country's power advancement. Amid these developments, KBank has played a crucial role in providing financial advisory service and facilities to many Lao power projects.
Recently, KBank and KASIKORNTHAI BANK Limited in Lao PDR jointly offered Electricite du Laos (EDL) a USD85-million syndicated loan, or some 3 billion Baht, of which USD77.5 million is granted by KBank and the remaining USD7.5 million by the Bank's locally incorporated institution in Lao PDR. The seven-year loan facilities will be used to improve electricity system infrastructure, e.g. electrical transmission cable and substation projects, and to expand power grids into rural areas.
According to Mr. Boun Oum Syvanhpheng, EDL Managing Director, the cooperation with KBank is in line with the Lao state enterprise's vision of sustainable power management that promotes extensive coverage of electricity utilization and connectivity in an eco-friendly manner. This financial support is truly of benefit for both Lao PDR and Thailand in terms of power security, international investment and strengthened mutual ties.
Mr. Patchara added that KBank is delighted to take part in the progression of Lao PDR's power state enterprise into a leading international entity for its sustainable growth. Given the proficiency, experience and professionalism of the state enterprise's management and staff, EDL's project administration will be undertaken smoothly and successfully. This loan extension is part of KBank's policy to participate in our neighboring countries' economic development, together with the Bank's support to Thai operators investing in Lao PDR.
As a state enterprise wholly-owned by the Ministry of Energy and Mines of Lao PDR, EDL has produced and distributed electricity for more than 57 years. It owns and manages assets related to power generation and transmission cables, electricity distribution to consumers, as well as the country's power imports and exports. In operating its power business, EDL promotes the nation's economic and social development by supplying sufficient power throughout the country at a reasonable cost, while placing great significance on environmental and social responsibility.