EGCO Group successfully issues 7 billion baht

Editorial Staff

EGCO Group successfully issues 7 billion baht green debentures with 3 times oversubscription, reflecting strong trust from investors

Electricity Generating Plc( EGCO Group) successfully offered its first green debentures with a total issue size of 7 billion baht to institutional and high-net-worth investors, which were oversubscribed by three times of their issuance target. This success underscores investors’ confidence in the company’s directions to broaden clean energy development and achieve Net Zero goal within 2050.

Mr. Thepparat Theppitak, EGCO Group’s president, said that EGCO Group offered 7 billion-baht green debentures under private placement to institutional and high-net-worth investors between 1 – 2 November 2023, with an issue date of 3 November 2023.

The debentures were well received by more than 80 investors who have indicated demand of over 20.5 billion baht or an equivalent to 3.15 times over the company’s initial target issue size of 6.5 billion baht. Thus, EGCO Group has seized the opportunity to exercise 500 million baht greenshoe option and upsized the transaction to 7 billion baht to accommodate and expand its investors base. While the issuance managed to attract various investor groups.

EGCO Group’s green debentures are name-registered, unsubordinated and unsecured debentures with debenture holders’ representative. They consist of five tranches with a total issue size of 7 billion baht, as follow: 3-year tranche with an interest rate of 3.35% p.a. with a size of one billion baht, 5-year tranche with an interest rate of 3.71% p.a. with a size of 700 million baht, 7-year tranche with an interest rate of 4.02% p.a. with a size of 500 million baht, 10-year tranche with an interest rate of 4.32% p.a. with a size of one billion baht, and 15-year tranche with an interest rate of 4.65% p.a. with a size of 3.8 billion baht.

These issuances received an AA+ rating from TRIS Rating Co. The Joint Lead Arrangers and Joint Green Structuring Advisors are Bangkok Bank, Krungthai Bank, and Bank of Ayudhya.

The proceeds raised under this debentures issuance will be used to repay equity investments in projects relating to renewable energy of the company and its affiliates as mentioned in the company’s Green Finance Framework and as linked to the United Nations’ Sustainable Development Goals (SDGs). Moreover, it helps the company drive towards its Net Zero target by 2050.