Electricity Generating Public Company Limited or EGCO Group successfully offered its first green debentures with a total issue size of THB 7,000 million to institutional and high-net-worth investors, which were oversubscribed by three times of their issuance target. This success underscores investors’ confidence in the company’s directions to broaden clean energy development and achieve Net Zero goal within 2050.
Mr. Thepparat Theppitak, EGCO Group’s President, said that EGCO Group offered our inaugural 7,000-million-baht green debentures under private placement to institutional and high-net-worth investors between 1 – 2 November 2023, with an issue date of 3 November 2023. The debentures were well received by more than 80 investors who have indicated demand of over THB 20,500 million or an equivalent to 3.15 times over the company’s initial target issue size of THB 6,500 million. Thus, EGCO Group has seized the opportunity to exercise THB 500 million greenshoe option and upsized the transaction to THB 7,000 million to accommodate and expand its investors base. While the issuance managed to attract various investor groups, including but not limited to asset management companies, life and non-life insurance companies, commercial banks, cooperatives, and other related investor groups.
EGCO Group’s green debentures are name-registered, unsubordinated and unsecured debentures with debenture holders’ representative. They consist of five tranches with a total issue size of THB 7,000 million, as follow: 3-year tranche with an interest rate of 3.35% p.a. with a size of THB 1,000 million, 5-year tranche with an interest rate of 3.71% p.a. with a size of THB 700 million, 7-year tranche with an interest rate of 4.02% p.a. with a size of THB 500 million, 10-year tranche with an interest rate of 4.32% p.a. with a size of THB 1,000 million, and 15-year tranche with an interest rate of 4.65% p.a. with a size of THB 3,800 million. These issuances received an AA+ rating from TRIS Rating Co., Ltd. and were under EGCO Group’s newly established THB 30,000 million MTN program in 2023. The Joint Lead Arrangers and Joint Green Structuring Advisors are Bangkok Bank, Krungthai Bank, and Bank of Ayudhya.
“EGCO Group would like to take this opportunity to express gratitude to all institutional and high-net-worth investors who have shown strong trust and overwhelmingly supported the transaction, particularly the 15-year tranche, despite current volatile market situation as driven by both external and internal factors. Regarding such a response, the company was able to achieve optimal pricing levels. The proceeds raised under this debentures issuance will be used to repay equity investments in projects relating to renewable energy of the company and its affiliates as mentioned in the company’s Green Finance Framework and as linked to the United Nations’ Sustainable Development Goals (SDGs). Moreover, it helps the company drive towards its Net Zero target by 2050,” concluded Mr. Thepparat.
