CK Power issues Bt600 million worth of debentures, aims to reduce financial costs
Nam Ngum 2 Power Company Limited (NN2), a subsidiary of CK Power Public Company Limited, has issued unsecured and unsubordinated Thai baht debentures worth Bt600 million with a tenure of five years and an interest rate of 2.45 per cent per year, CK Power managing director Thanawat Trivisvavet said.
Tris Rating agency assigned a credit rating of “A/Stable Outlook” on February 21.
The debentures are a private placement offering to no more than 10 specific investors on March 4. They were issued the next day, with Bangkok Bank acting as underwriter.
The previous debentures offered by NN2 have been used to repay all remaining loans from financial institutions, the company said. The issuance of this new set of debentures is a part of CK Power’s ongoing financial cost reduction plan, which is offered during a period of relatively low interest rates.
“This will help to further reduce financial costs and enhance the strength of our business,” Thanawat said.
NN2 is the first juristic firm registered in Laos to issue debentures in Thai baht in order to refinance 100 per cent of its commercial loans, reflecting investor confidence in CKPower’s business potential, strong performance and experienced management team with direct expertise in the field of sustainable power business, the company added.
