Amata B.Grimm Power Group appoints KBank as financial advisor for 50-billion-Baht financial facility to construct 10 power plants

KASIKORNBANK has made a decisive move to become the top player for small power producers (SPPs) with its latest support as financial advisor for Amata B.Grimm Power, part of B.Grimm Group, for mobilizing 50 billion Baht to finance the construction of 10 power plants. Power produced by these new plants will be sold to the Electricity Generating Authority of Thailand (EGAT) and five leading industrial estates for Thailand’s sustainable power security.

Mr. Krisada Lamsam, Senior Executive Vice President of KASIKORNBANK, said Amata B.Grimm Power Co., Ltd., Thailand’s major power producer, has appointed KASIKORNBANK as its financial advisor for a 50-billion-Baht facility to finance the 10 power plants’ construction, under the small power producer (SPP) agreement of Co-generation by Amata B.Grimm Power Group. The construction of 10 power plants in five industrial estates is scheduled for completion within seven years. Once completed, the 10 power plants, producing 90 megawatts each, will generate 900 megawatts for EGAT from their total capacity of 1,200 megawatts, under a 25-year power purchase agreement. Remaining power and steam will be sold to factories located in the industrial estates.

The 50-billion-Baht financial facility is considered one of Thailand’s largest-ever amounts of project financing. Thus, funding will be mobilized from a variety of sources, including syndicated loans from domestic and international banks, issuance of diverse financial instruments, etc. The money will gradually finance the company’s power plant projects over six to seven years; thus there will be no impact on the liquidity of KBank or the domestic financial system.

As part of the power security of the country, and that of major industrial estates in particular, Amata B.Grimm Power’s plants will ensure factory owners of a smooth electricity generating process with uninterrupted power provision. The country’s consistent and reliable power generation is one of the major criteria set by foreign investors for their decision-making in domestic investment. The 10 power plants to be constructed will accommodate long-term power security for Thailand’s household, business and industrial sectors, as well as overall national development.

 

According to Ms. Preeyanart Soontornwata, President of Amata B.Grimm Power, Thailand’s power demand has continued to rise, with a peak recorded at 26,121 megawatts in 2012, and 27,443 megawatts expected in 2013. In order to support this demand and to ensure the country’s sustainable power security and stability, Amata B.Grimm Power will invest 50 billion Baht for the construction of 10 power plants, and has appointed KBank as its advisor for financial facilities accordingly. The Bank is trusted by the company as an expert in satisfying the diverse demands of project financing, and most importantly as one of Thailand’s most knowledgeable banks in the power business.

The 10 new power plants will be located in five industrial estates, including two plants in the Bangkadi Industrial Park, Pathum Thani, three plants in the Amata Nakorn Industrial Estate and Hemaraj Chonburi Industrial Estate, Chonburi, three plants in the Amata City Industrial Estate, Rayong, and two plants in the VRM Ratchaburi Industrial Estate, Ratchaburi, producing 116-142 megawatts of power each. Construction will be completed within 2019.

Ms. Preeyanart added that Amata B.Grimm Power is already operating three power plants, including two in the Amata Nakorn Industrial Estate, Chonburi and one in the Amata City Bien Hoa Industrial Park, Vietnam, with a total capacity of 363 megawatts. Three more SPPs are under construction, one of which is a 130-megawatt plant located in the Amata Nakorn Industrial Estate, Chonburi, to be commercialized in September 2012, and two 120-megawatt plants located in the Amata City Industrial Estate, Rayong. They will be completed within 2013. In conclusion, all of the planned and existing power plants of the company will have a combined capacity of 2,000 megawatts, and can meet the power needs of at least 800 factories apart from EGAT.