SET-listed BCPG Plc, the renewable power arm of mostly state-owned refiner Bangchak Corporation Plc , has borrowed US$300 million (10 billion baht) to acquire geothermal power assets in Indonesia.
The syndicated loan was upon agreed yesterday in Bangkok after six months of talks on purchasing the assets, according to BCPG president and chief executive Bundit Sapianchai.
The loan providers include Bangkok Bank, Mizuho Bank and ICBC Thai.
Through the investment, BCPG will hold indirect equity in three geothermal power projects with an equivalent total power production capacity of 182 megawatts, Mr Bundit said.
Investment details include 20% interest in the 347MW Wayang Windu Power Plant, which has been operating at 127MW.
BCPG also holds a 17.3% stake in Salak Power Plant, with a total production capacity of 377MW, an equivalent of electricity and steam, and holds 17.3% in Darajat Power Plant, with a total production capacity of 271MW of electricity and steam.
All the projects have long-term feed-in tariff purchasing contracts with Indonesia's state utility, Perusahaan Listrik Negara (PLN).
After the share transfer is completed, the company expects to realise profits immediately in the third quarter of this year. Mr Bundit did not provide a specific figure for the expected profits.
BCPG aims to have total capacity of 1,000MW within 2020, and Mr Bundit said the company will reach the goal faster than expected.
"We strongly believe that the investment will help enhance BCPG's long-term stability, and it is in line with BCPG's business plan to diversify into other kinds of renewable resources and into other countries to add to the solar and wind power businesses in Thailand, Japan and the Philippines," Mr Bundit said.
As a leading renewable company from Thailand, BCPG is keen to invest in geothermal energy and leverage the expertise of parent Bangchak.
With this investment, BCPG's total power-generating capacity will be more than 600MW by the end of this year.
In April, BCPG acquired a 40% share in the Philippines' Petro Wind Energy Inc from Singapore-based Cap Asia Asean Infrastructure Fund, which owns a 36MW wind farm and is constructing a 14MW wind farm project in Visayas.
BCPG shares closed yesterday on the Stock Exchange of Thailand at 14.90 baht, up 30 satang, in trade worth 265.1 million baht.