TRIS Rating affirms the company rating on Banpu Public Company Limited (SET: BANPU) and the ratings on BANPU’s existing senior unsecured debentures at A+ with a stable outlook. At the same time, TRIS Rating assigns the rating of A+ to BANPU’s proposed issue of up to THB12 billion in senior unsecured debentures. The new issue rating replaces the issue rating previously assigned on 11 January 2022, following BANPU’s request to increase the issue size from up to THB10 billion to up to THB12 billion. BANPU intends to use the proceeds from the new debentures to refinance its existing debts and to fund 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.
