TRIS Rating affirms the ratings on the guaranteed debentures of Amata B.Grimm Power SPV1 Ltd. (ABPSPV) at ?A-? with a ?stable? outlook. The debentures are jointly and severally guaranteed by three power generation companies: Amata B.Grimm Power 3 Ltd. (ABP3), Amata B.Grimm Power (Rayong) 1 Ltd. (ABPR1), and Amata B.Grimm Power (Rayong) 2 Ltd. (ABPR2). ABP3, ABPR1, and ABPR2 are rated ?A-? with ?stable? outlooks. The issue ratings reflect the creditworthiness of ABP3, ABPR1, and ABPR2.
Key Rating Considerations
Unconditional and irrevocable guarantees
The ratings on ABPSPV?s guaranteed debentures are equal to the ratings on its guarantors, ABP3, ABPR1, and ABPR2. Under the terms of the guarantee, the guarantors jointly and severally provide unconditional and irrevocable guarantees on all amounts due under the debentures, including the principal amount of up to THB11.5 billion, interest accrued thereon, and related expenses.
Strong credit profile of the guarantors
Each guarantor owns and operates a cogeneration power plant under the Small Power Producer (SPP) scheme. The ratings on the guarantors primarily reflect reliable cash flow generation, backed by long-term power purchase agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT). In addition, each power plant uses proven technology in cogeneration power and has strong track record of operational performance. Moreover, the parent company of the guarantors, B.Grimm Power PLC (BGRIM), also has extensive experience in power generation operation.
We consider all guarantors as strategic subsidiaries of BGRIM as they operate in line with the group?s core business. In our view, the cogeneration power plants are the centerpiece of BGRIM?s power portfolio, representing 74% of total power generation capacity. Therefore, we expect the guarantors will receive parental support in a distress scenario.
ABP3 was established in 2010. Its cogeneration power plant is located in the Amata City (Chonburi) Industrial Estate (ACCIE), Chonburi Province. The power plant has an installed capacity of 132.5 megawatts (MW), plus 30 tons per hour of steam. It commenced commercial operation in October 2012. ABP3 holds a 25-year PPA with EGAT, covering 90 MW, and long-term offtake agreements with industrial customers to sell 44.1 MW of electricity and 13 tons per hour of steam.
ABPR1 was established in 2011. Its cogeneration power plant is located in the Amata City (Rayong) Industrial Estate (ACRIE), Rayong Province. Starting commercial run in November 2013, the power plant has an installed capacity of 123.3 MW, plus 30 tons per hour of steam. ABPR1 holds a 25-year PPA with EGAT, covering 90 MW, and long-term offtake agreements with industrial customers to sell 33.8 MW of electricity and 14 tons per hour of steam.
ABPR2 was established in 2011. Located in ACRIE, Rayong Province, ABPR2?s cogeneration power plant commenced its operation in June 2013. It has an installed capacity of 124.4 MW, plus 30 tons per hour of steam. ABPR2 holds a 25-year PPA with EGAT, covering 90 MW, and long-term offtake agreements with an industrial customer to sell 24 MW of electricity and 14 tons per hour of steam.
RATING OUTLOOK
The ?stable? rating outlook mirrors the ?stable? outlooks of the ratings assigned to the guarantors.
RATING SENSITIVITIES
The issue ratings on ABPSPV?s guaranteed bonds may change if the rating on any of its guarantors changes.
COMPANY OVERVIEW
ABPSPV was incorporated in 2011 with paid-up capital of THB2 million as a vehicle to issue debt securities for the three power producers which BGRIM owns. ABPSPV is owned by ABP3, ABPR1, and ABPR2, each with an equal stake of 33.33%. ABPSPV was established with the sole objective to issue guaranteed debentures of up to THB11.5 billion in 2017. The proceeds from the debentures were lent to ABP3, ABPR1, and ABPR2 so that each company could refinance outstanding project loans and gain some working capital.
ABPSPV operates no business. Thus, the cash needed to repay the debenture holders will come from the interest and principal repayments received from ABP3, ABPR1, and ABPR2. ABPSPV has inter-company loan agreements with each project company. The repayment schedules of the inter-company loans match the repayment schedules for the debenture holders.
RELATED CRITERIA
- Group Rating Methodology, 7 September 2022
- Corporate Rating Methodology, 15 July 2022
- Key Financial Ratios and Adjustments for Corporate Issuers, 11 January 2022
- Issue Rating Criteria, 15 June 2021
Amata B. Grimm Power SPV 1 Ltd. (ABPSPV)
Issue Ratings:
ABPSPV234A: THB900 million guaranteed debentures due 2023 A-
ABPSPV244A: THB900 million guaranteed debentures due 2024 A-
ABPSPV264A: THB1,000 million guaranteed debentures due 2026 A-
ABPSPV274A: THB1,500 million guaranteed debentures due 2027 A-
ABPSPV284A: THB800 million guaranteed debentures due 2028 A-
ABPSPV294A: THB1,000 million guaranteed debentures due 2029 A-
ABPSPV304A: THB600 million guaranteed debentures due 2030 A-
ABPSPV324A: THB900 million guaranteed debentures due 2032 A-
Rating Outlook: Stable