B.Grimm Power Plc (BGRIM), Thailand's top private power generation firm by capacity, has allocated 3 billion baht in funding raised through its green debenture offerings to finance solar and wind energy development in Thailand and Vietnam.
Not only was an initial 8-billion-baht offering plan fully subscribed, but the doubling of greenshoe options to 4 billion baht also drew massive interest.
Harald Link, chairman and president of BGRIM, said the overwhelming response raising 12 billion baht during a pandemic when the capital market is depressed is truly remarkable.
"Investors' keen interest is a vote of confidence in BGRIM's business and its green energy drive, which is what these debentures are about," he said.
BGRIM's debentures were divided into three tranches: 2 billion baht for a three-year maturity with an interest rate of 1.41% per year; 3 billion baht for a "green bond" with a five-year maturity and interest of 1.95% a year; and 7 billion baht with a 10-year maturity and interest of 3.20% annually.
Proceeds from the five-year tranche go towards the development of BGRIM's two solar farm projects in Vietnam and a wind energy venture in the northeastern province of Mukdahan in Thailand.
The Vietnam schemes, located in the provinces of Phu Yen and Tay Ninh with a combined generating capacity of 677 megawatts, are allocated 87% of the proceeds. The 18MW facility in Mukdahan receives the remaining 13%.
The company is earmarking proceeds from the debentures to repay existing debts, invest in development projects and use as working capital.
BGRIM'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.
source : bangkokpost