Glow completes Bt5.555 bn bond issuance

Glow completed the TNP acquisition in July. The latter has 143 MW capacity in operation and 110 MW capacity under construction, with scheduled commercial operation at the end of 2012. The bonds were issued on Aug 31 with the coupon rate of  5 per cent per annum.

"As part of our plan to enhance return on TNP acquisition, refinancing is the biggest synergy element," said Suthiwong Kongsiri, CFO of Glow Group.

The group initially planned to raise Bt3 billion to prepay outstanding amount of TNP's project finance loans, and to raise next year another Bt3 billion to complete TNP's expansion, TNP2 project.

"Nevertheless, with overwhelming demand from investors, we successfully placed Bt5.555 billion in total. The amount issued already covers most of TNP2 project funding requirement. This success not only helps us deliver planned value creation, but it also reflects confidence of investors in our solid business fundamentals and financial strengths, despite volatility in financial markets during last weeks," Suthiwong added.

Glow Group's combined installed capacity is 1,945 MW of electricity and 1,046 tonnes per hour of steam.