Bangkok--21 Aug--SET Corporate Communications
The Stock Exchange of Thailand (SET) will list Khonburi Sugar Power Plant Infrastructure Fund, on August 24, under the ticker symbol "KBSPIF", with a market capitalization at its initial public offering (IPO) of THB 2.80 billion (approx. USD 89.74 million).
SET Senior Executive Vice President Manpong Senanarong said that KBSPIF would list and start trading on SET in the Resources industry group, Energy & Utilities sector.
KBSPIF invests in the rights to receive 62% of revenue from Khonburi Power Plant Co., Ltd. (KPP) engaged in a biomass power plant generated from sugarcane molasses under 2 power purchase contracts, for 20 years with expiry date on December 31, 2039. The power plant commenced commercial operation date (COD) from January 2015. The first contract comprises an agreement to feed 22 megawatts (MWs) of power under small power producer (SPP) scheme generated by KPP into Electricity Generating Authority of Thailand (EGAT)’s grid, taking into account only revenue which is not affected by the change in USD-denominated currency and the average coal price. The second contract is an agreement to supply another 3.5 MWs to Khonburi Sugar pcl (KBS) at a price of THB 2.90 per kilowatt-hour throughout the contract.
KBSPIF offered 280 million newly issued units to general public during August 4-7, and special subscribers during August 10-13, 2020, at a par value of THB 10 per unit, for a total of THB 2.80 billion. Krungthai Asset Management pcl (KTAM) is its fund manager, and Krungthai Bank pcl is financial advisor and lead underwriter.
KTAM Chief Executive Officer Chavinda Hanratanakool stated that KBSPIF’s investment assets have potential to generate steady income as they are based on the long-term agreements with EGAT and KBS, at a certain power supply rate. Investment in KBSPIF is therefore considered to be an opportunity and an alternative for investors who have appetite in energy business which offers constant returns in the long run.
KBSPIF's dividend policy is to pay at least on a semi-annual basis at no less than 90 percent of the adjusted net profit of its financial year. Three major unit holders after the IPO are KBS (15.00 percent), Thai Samsung Life Insurance pcl (6.07 percent) and Bangkok Life Assurance pcl (5.36 percent).
For more information on PROSPECT, please see its prospectus at the Securities and Exchange Commission's website at www.sec.or.th ; and for general information, please visit www.kbspif.com , as well as www.set.or.th.