Prestigious Thai power generation company B.Grimm Power Plc (BKK: BGRIM) has announced it would allocate THB3 billion ($91 million) in funding for solar and wind energy development in Thailand and Vietnam raised through its green debenture offerings.
Not only was an initial THB8 billion ($242.7 million) offering plan fully subscribed, but the doubling of greenshoe options to THB4 billion ($121.4 million) also drew massive interest, Bangkok Post reported.
Harald Link, chairman and president of B.Grimm Power, said the overwhelming response raising THB12 billion ($364 million) during a pandemic when the capital market is depressed is truly remarkable.
Link also expressed belief in the vast potential of green energy projects which are all the rage among international investors at the moment.
According to Bangkok Post, B.Grimm Power's debentures were divided into three tranches: THB2 billion for a three-year maturity with an interest rate of 1.41 per cent per year; THB3 billion for a "green bond" with a five-year maturity and interest of 1.95 per cent a year; and THB7 billion with a 10-year maturity and interest of 3.20 per cent annually.
Moreover, B.Grimm Power also confirmed all proceeds from the five-year tranche will be utilised for the future development of its two solar farm projects in Vietnam and a wind energy venture in the northeastern province of Mukdahan in Thailand.
The Vietnam schemes, located in Phu Yen and Tay Ninh provinces with a combined generating capacity of 677MW, are allocated 87 per cent of the proceeds. The 18MW facility in Mukdahan will receive the remaining 13 per cent.
The company is earmarking proceeds from the debentures to repay existing debts, invest in development projects, and use as working capital.
“B.Grimm Power's debentures were bought by institutional investor groups including life insurance companies, asset management firms, government funds, cooperatives, and other financial institutions. The company's green bond is verified to conform with the Climate Bonds Standard to ensure best practices for climate integrity, management of proceeds and transparency,” Bangkok Post noted.