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Laos offers dam bonds

Jul 04. 2018
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By The Nation

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EDL-Generation Public Company, Laos' electricity producer, has announced coupons for its baht-denominated bond offerings of up to Bt17.5 billion.

The six-tranche issuance, rated BBB+/negative outlook by TRIS Rating in Thailand have maturities of three, five, seven, 10, 12 and 15 years and coupons of 3.9 per cent, 4.5 per cent, 4.85 per cent, 5.5 per cent, 6 per cent, and 6.25 per cent per annum respectively. 

The bonds are available through Bangkok Bank, Krungthai Bank, Siam Commercial Bank, Standard Chartered Bank and Thanachart Bank from July 10 to 12, with the issue on July 13.

Specialising in hydropower, EDL-GEN produces electricity both for domestic consumption and export to neighbouring countries, such as Thailand. The company owns 15 hydropower plants and one solar farm, giving a combined production capacity of 1,137MW. 

Around 619MW of this is attributable to its 10 wholly owned hydropower plants and the remaining 518MW comes from its shares in five hydropower projects and the solar farm.

Laos' “Battery of Asean” policy means EDL-GEN is committed to increasing its generating capacity. The company is currently pursuing the acquisition of shares in Xayaburi Hydropower Project and Donsahong Hydropower Project from Electricité du Laos and plans to use funds obtained from this offering to complete the transaction. 

The purchase will add a combined 309 MW to EDL-GEN’s generation capacity and highlights its goal to become a premier regional supplier.

It is EDL-GEN’s third bond offering in Thailand. The company intends to broaden its investor base, namely to increase participation from "high-net-worth" investors. It said the offering showcases EDL-GEN’s strong credit positioning and the depth, breadth and liquidity of Thailand’s debt capital markets in the increasingly integrated regional capital markets.

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