Banpu seeks SEC approval for Bt6-bn debenture issue

The move would help strengthen its capital structure in the long term and support its business expansion in the future.
The company's first subordinated perpetual debentures have been assigned a credit rating of 'A-' by Tris Rating Co Ltd on February 27, 2020 while the company was rated 'A+' with 'stable' outlook.
The coupon of the debentures has been set at 5.00 per cent per annum for the first five years with semi-annually payment. It has been expected to offer by the end of April this year.
The company believes this is a good time to organise the financial structure and get the company's capital ready for its future investment plans in line with its Greener & Smarter Strategy, said Somruedee Chaimongkol, chief executive officer.
Therefore, the company decided to issue subordinated perpetual debentures. The interest rate has been set at 5.00 per cent per annum for the first five years, with the coupon payment made every six months, she added.
The issuer holds the right to redeem the debentures after five years, or according to other conditions defined in the registration statement and prospectus, as well as to defer interest payment unconditionally.
The company has appointed Bangkok Bank, Krungthai Bank, Bank of Ayudhya (Krungsri Bank), CIMB Thai, Phatra Securities, and Asia Plus Securities as arrangers.
This year, Banpu have a capital expenditure plan of around US$ 930 million, of which US$ 700 million will be allocated to the expansion of natural gas business, US$170 million will be invested in renewable power plants, US$ 50 million in the energy technology business, and US$ 10 million in coal business.
This expansion will allow Banpu to strengthen its vision to be an integrated energy solutions business at the heart of innovation, technology, and sustainability to continuously deliver sustainable returns for both shareholders and stakeholders," Somruedee said.