B.Grimm Power Public Company Limited (SET: BGRIM)’s 12.2-billion-baht debenture issuance has received enthusiastic response from investors.
The robust reception to the debentures which incorporate “green bonds” was seen in the “book-building” process in which investors indicated their intention to subscribe.
The interest, across a wide range of investor groups including life insurance firms, asset management companies, government funds, savings co-operatives and other financial institutions, has prompted BGRIM to activate its “greenshoe option.”
The option added 200 million baht to the 12 billion baht in primary tranche of debentures offering.
BGRIM has set a provision of two billion baht in additional debentures if the demand for the security issue proved higher than the 12-billion-baht initially expected.
“The response speaks volumes of investors’ confidence in BGRIM,” said Dr Harald Link, President of BGRIM.
BGRIM’s unsubordinated debentures come in five allotments — a 3-year 4.2-billion baht tranche, a 3-year “green bond” of 300 million baht, a 5-year “green bond” of 3 billion baht, a 7-year 2.15 billion baht plus a 10-year 2.55 billion baht tranche in which the issuer has the right to redeem the debentures before the maturity.
These debentures are rated “A-“ with a “stable” outlook from the TRIS Rating Co., Ltd, the credit rating agency, on 25 April 2022.
These debentures were offered to institutional and high net worth investors on 6 May and 9-10 May for them being issued on 11 May.
The debenture underwriters are Krung Thai Bank, Kasikorn Bank, United Overseas Bank (Thai), Standard Chartered Bank (Thai) and Kiatnakin Phatra Securities PCL.
Dr Link has thanked all investors for their interest in investing in BGRIM’s debentures amid the market volatilities caused by financial market situation, the Russia-Ukraine war and coronavirus pandemic.
BGRIM will use the money from this debenture issuance for investment in various projects and as working capital.
The 3.3 billion baht proceeds from the offering of green bond will go towards substituting the equity for its renewable energy ventures.
They include two solar energy schemes namely Ray Power in Cambodia and the reNIKOLA in Malaysia; Bothong Wind Farm in Thailand and renewable energy projects in South Korea.
The debentures that the company issued this time bear reasonable cost and BGRIM believes that it will build a foundation for future offerings of debentures.
The response to the BGRIM debentures reflect investors’ confidence in the company, both in terms of performance, management team with long experience in business and leadership in the generation and sale of electricity and steam with excellent world-class standards.
The B.Grimm group, which BGRIM forms part, has been doing business in Thailand for a long time and will continue to grow with Thailand.
