B.Grimm Power PCL (BGRIM), one of leading private energy producers in Thailand with 55 power generation ventures, is poised to issue multi-billion-baht perpetual debentures.
The BGRIM’s first issue of debentures for 2023 is expected to carry a fixed interest rate of 5.75-5.95% per annum in the first five years payable every six months throughout the debenture life. The exact interest rate will be announced soon. BGRIM is entitled to defer the interest payment and accruing interest to be paid on any day to the debenture holders with no limit on the duration and number of times at its sole discretion.
The interest rate will be adjusted every five years based on the 5-year government bond yield. The offering price is 1,000 baht per unit with subscriptions are expected to take place on 28-30 March through six leading financial institutions, namely Bangkok Bank, Krung Thai Bank, Kasikorn Bank, Siam Commercial Bank, CIMB Thai Bank and Kiatnakin Phatra Securities.
BGRIM, as a company, has been assigned an A credit rating with a stable outlook and a BBB+ for the forthcoming perpetual debentures by TRIS Rating Co. Ltd. on 24 January 2023. The ratings mirror the stability, potential and strength of the company which has operated 20 co-generation powerhouses and 35 renewable energy plants in Thailand and abroad.
The funds mobilised from the debenture issue will go towards project investment for an amount of 2-4 billion baht, 1-2 billion baht for paying debts due, and 2-3 billion baht for working capital within the year 2024.
BGRIM President Dr. Harald Link said the company this year has embarked on the GreenLeap strategy to transform its business operations for continuous growth, becoming a leading global company, and being in the forefront in sustainable and safe energy development based on the tradition of conducting business with compassion and in harmony with nature.
The newly-announced strategy will be instrumental by BGRIM’s strengths that comprise the ability to create business opportunities, good and trusted partnerships, development and project management capabilities, reasonable cost financing, and the availability of modern technology. These factors will be the driving force to turn BGRIM into a leading global energy producer and achieving Net-Zero Carbon Emissions by 2050.
Under the GreenLeap strategy, BGRIM has set its sights on achieving an annual EBITDA (income before interest, taxes, depreciation and amortisation) target of over 35 billion baht with an EBITDA margin of 35% by 2030, while maintaining a strong financial structure. BGRIM’s target is to achieve compounded annual EBITDA growth of 10%, while adhering to the guideline set by the International Energy Agency (IEA) for Non-OECD countries to cap the global warming at 2°C with the proportion of power plants from renewable energy being above 50% by 2030.
B.Grimm Group has been operating in Thailand for 145 years and BGRIM was listed on the Stock Exchange of Thailand with a total current market capitalisation of more than 100 billion baht. BGRIM aims to boost its power generation capacity from 3,338 megawatts at the end of 2022 to 4,700 MW in 2024 and further to top 10,000 MW in 2030 from investments in power plants, mainly in renewal energy, both at home and abroad.
The expansion would allow the company to raise its annual revenue to 100 billion baht. The company is seeking to invest in additional power stations in many countries around the world, such as Vietnam, Malaysia, South Korea, Japan, China, and the Middle East including Saudi Arabia and the United Arab Emirates, as well as Europe to diversify the risk of energy costs.
BGRIM has strived to conduct its business on the basis of sustainability. From such determination, the company has earned recognitions from national and international sustainability assessors, being included in The Sustainability Yearbook by S&P Global for two consecutive years, and being among the top 10% of the power utilities industry on the 2023 report. In addition, BGRIM became a member of the FTSE4Good Index Series and receiving MSCI ESG Rating at the BBB level.
Furthermore, it was honoured with the Rising Star Sustainability Award 2022 and being credited as Thailand Sustainability Investment (THSI) by the Stock Exchange of Thailand for five years in a row. The company also gained five-star scores in the Corporate Governance Report of Thai Listed Companies (CGR) for three consecutive years in the survey conducted by the Thai Institute of Directors Association. This reinforces BGRIM’s commitment to conducting business in accordance with sustainable development guidelines under good corporate governance.
The BGRIM’s perpetual debentures are expected to be offered to general investors on 28-30 March nationwide through:
– Bangkok Bank (call 1333 or via Bualuang mBanking application)
– Krung Thai Bank (Tel. 02-111-1111)
– Kasikorn Bank (Tel. 02-888-8888 press 819)
– Siam Commercial Bank (Tel. 02-777-6784) and its sales unit Innovative X Securities
– CIMB Thai Bank (Tel. 02-626-7777)
– Kiatnakin Phatra Securities and its sales agent Kiatnakin Phatra Bank (Tel. 02-165-5555)
Bank of Ayudhya serves as a debenture registrar and debenture holder representative.
BGRIM is in the process of filing a registration statement and draft prospectus with the Securities and Exchange Commission of Thailand (SEC) and they are not yet effective.
For general investors interested in subscribing to debentures, learn more details from the draft prospectus at https://market.sec.or.th/public/ipos/IPOSDE01.aspx?TransID=490612.
