TRIS Rating affirms the company rating on Banpu Public Company Limited (SET: BANPU) and the ratings on BANPUs senior unsecured debentures at A+ with a stable outlook. At the same time, TRIS Rating assigns the rating of A+ to BANPUs proposed issue of up to THB7 billion and an additional greenshoe portion of up to THB3 billion in senior unsecured debentures. The proceeds from the new debentures are intended to be used for refinancing its existing debts and for its working capital.
The ratings continue to reflect the company’s leading position in the coal industry in the Asia-Pacific region, reliable stream of income from its power business, and the strategic move towards an integrated green energy company. The ratings take into consideration coal price volatility and factor in the prospect of declining coal demand over the long term, driven in part by global efforts to reduce carbon emissions.
As of September 2021, BANPUs consolidated debt was about USD5.7 billion. BANPUs priority debt consisted of USD62 million in secured debts and USD1.1 billion in senior debts owed by BANPUs subsidiaries. The ratio of priority debt to total debt was about 20% at the end of September 2021.
