EDL-Gen to raise B6-8bn for projects

EDL-Gen to raise B6-8bn for projects

EDL-Generation Plc (EDL-Gen), a Laotian state-majority-owned power company, plans to raise capital in Thailand's financial market of 6-8 billion baht to expand in its homeland.

It will raise funds through Twin Pine Consulting Co, a regional financial advisory firm, in compliance with new regulations from the Public Debt Management Office and a credit assessment by Tris Rating Co.

A corporate bond is expected to be issued next week, said chief executive Boun-Oum Syvanpheng.

The proceeds will be used to acquire nine more hydropower projects from its parent company, Electricite du Laos. The acquisition will add nearly 400 megawatts to its capacity.

EDL-Gen now operates 11 hydropower projects with combined capacity of 881 MW. 

Mr Boun-Oum said EDL-Gen aimed to increase capacity to 2,300 MW by 2020. Most projects will be acquired from its parent company. 

The Laotian government plans to export power to neighbouring countries including Thailand, Vietnam and China. 

The government expects to see power generation in Laos expand to 24,000 MW in 2020 from 1,917 now. About 85% will be exported. 

EDL-Gen issued two bonds last year to raise 4.5 billion baht for developing domestic infrastructure.

"EDL-Gen has high growth potential thanks to stable revenue streams, a low debt-to-capital ratio, strong domestic customer base and high demand from overseas markets because of the lower cost of hydropower," said Adisorn Singhsacha, managing director of Twin Pine Consulting.

Laos plans to develop itself into an industrial-based country, so electricity demand is likely to increase, while neighbouring countries are keen to import more power from Laos.

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