Nava Nakorn Electricity Generating Successfully Issued Its Debut Debentures of THB 6,400 million

Stocks and Financial Services Press Releases Friday September 14, 2018 10:08
Bangkok--14 Sep--KASIKORNBANK

Nava Nakorn Electricity Generating's Company Limited ("NNEG") is pleased to announce its inaugural THB debentures issuance from a successful multi-tranche offering with amortization structure of 3-year with interest rate of 2.68%, 5-year with interest rate of 3.00%, 10-year with interest rate of 3.85% and 16-year with interest rate of 4.22%, totaling THB 6,400 million on September 5, 2018.

The debentures are rated "A-" by Fitch Ratings (Thailand) on July 18, 2018. Bank of Ayudhya Public Company Limited, Kasikornbank Public Company Limited, and TMB Bank Public Company Limited were appointed as joint lead underwriters for this offering.

The offerings received a warm response from wide array of institutional and high net worth investors, including asset managements, provident funds, insurance companies, and cooperatives. Such investor participation reflects their confidence in NNEG's strong business profile and solid expansion plan. NNEG targets to use the proceeds from this issuance to repay all its bank project loans, and for financing Phase 2 expansion of 60 megawatts of electricity and 10 Tons/hour of steam where the company will have total electricity generation capacity (including Phase 1 and Phase 2) of 185 megawatts and 40 Tons/hour of steam.

Mr. Nipit Arunvongse Na Ayudhya, President of Nava Nakorn Public Company Limited and Director of Nava Nakorn Electricity Generating Company Limited (NNEG), said after the success of Amortized Debentures issuance of NNEG "First time issuance of NNEG's amortized debentures was received a good response by many institutional and high net worth investors as a result of credibility of NNEG's sponsors are Ratchaburi Electricity Generating Compay Limited, Global Power Synergy Public Company Limited and Nava Nakorn Public Company Limited covering the conspicuous operating performance and the substantial and stable statements of NNEG. And we estimated to achieve the cost savings from amortized debenture transactions at least 1% or 300 million baht to improve the financial stability of NNEG in the long run."

Mr. Prakob Phiencharoen, Executive Vice President, Head of Corporate Banking Division of Bank of Ayudhya Public Company Limited, said "We are delighted with the success of the inaugural Thai Baht debentures with amortization structure of NNEG. Despite tough market conditions, the offering was well received by quality investors thanks to the credit worthiness and credibility of NNEG and its sponsors. This transaction allowed the company to lock-in the favorable rates now amidst the interest rate upward trend."

Mr. Ronnarit Virachanang, Head of Debt Capital Market, Capital Markets Business Division, KASIKORNBANK Public Company Limited, said "The offerings positively contribute to the Thai debt capital market in terms of breath and depth. Currently, there are only a handful of amortized bonds in the market. NNEG's flexibility to cater to the demand for different types of investor should promote increasing participation for this type of security in the future. The transaction also allows cost efficiency for NNEG followings the flexibility to repay bond principal before maturity and to match company's cash flows. It is truly a win-win outcome."

Mr. Vikran Paovarojkit, Head of Multi-Corporate Banking Customer Relationship Management and Investment Banking, TMB Bank Public Company Limited "We are pleased with the success of the Amortized Debentures of NNEG initial fund raising as planned. Although the market condition was considerably volatile, NNEG's amortized debenture issuance has received good response from the institutional and high net worth investors as they were confident in the company's performance, demonstrated by oversubscription. The fund raised from the issuance will support its Phase II expansion plans of electricity generation and steam capacity, which will enable the company to continue to grow strongly and sustainably in the future."

About NNEG:

NNEG is a joint venture of three partners, including Ratchaburi Electricity Generating Company Limited or RATCHGEN (40% shareholding), Nava Nakorn Public Company Limited or NNCL (30%), and Global Power Synergy Public Company Limited or GPSC (30%). NNEG's vision is to be a high-efficiency power plant living together with community.

NNEG is a small power producer (SPP) generating 125 megawatts of electricity and 30 Tons/hour of steam. It achieved COD since June 3, 2016. It sells electricity under a power purchase for small power producer agreement in a firm arrangement in the amount of 90 megawatts to EGAT with 25 years term of contract, and distributes remaining electricity as well as steam to industrial users with an average of 20-year long term contract in Nava Nakorn Industrial Promotion Zone. The company is currently proceeding with its Phase 2 expansion and the expected COD is around August 2020. The company will have total electricity generation capacity (including Phase 1 and Phase 2) of 185 megawatts and 40 Tons/hour of steam.

Latest Press Release

AEON partners with JCB to launch AEON J-Premier Platinum Credit Card to offer exclusive privileges throughout Thailand and Japan

AEON Thana Sinsap (Thailand) Public Company Limited partners with JCB International (Thailand) Co., Ltd. to launch "AEON J-Premier Platinum Credit Card" that will allow Thais to enjoy everything Japan, with exclusive privileges and offers in dining,...

China and Europe post double digit increases in RD spending

- China and Europe increase R&D spending the most as global R&D investment reaches US$782bn - 88 companies outperform industry peers on sustained financial success with modest R&D spend - Amazon retains top spot as world's largest corporate...

Photo Release: EXIM Thailand Hosts 6th Council of Specialized Financial Institutions Meeting in 2018

Mr. Pisit Serewiwattana (forth right), President of Export-Import Bank of Thailand (EXIM Thailand), welcomed Mr. Pornchai Triraveja (fifth right), Fiscal Policy Advisor of Fiscal Policy Office (FPO), and Mr. Chatchai Sirilai (fifth left), President of...

Kinesis Money and Allocated Bullion Exchange Explore Creating a Joint Commercial Blockchain Venture with Jakarta Futures Exchange in Indonesia

Today, Jakarta Futures Exchange (JFX), the leading futures and derivatives exchange group in Indonesia, have announced an expanded Memorandum of Understanding (MOU) with Kinesis Money and Allocated Bullion Exchange (ABX). The partnership will seek to...

Photo Release: SCB and Mae Fah Luang University Make Headway for Cashless Society with Smart University Program

"The Siam Commercial Bank (SCB)", the leader in digital lifestyle banking, continues to pave way for a cashless society at universities across Thailand. The partnership with Mae Fah Luang University continues its "Smart University" program. MFU App is...

Related Topics