SET-listed Khonburi Sugar (KBS) is delaying the commercial operation of its new biomass-fired power plant in Nakhon Ratchasima because of the impact of the pandemic, but plans to launch a 2.8-billion-baht infrastructure fund early next month to fuel investment expansion plans.
Travel restrictions as a result of the outbreak made the company unable to import construction materials and barred foreign engineers from coming to Thailand.
Experts from Tokyo-based Mitsui & Co were hired to design and oversee the construction, earlier expected to be completed by this year.
"The new renewable power plant faces a delay," said KBS executive director Issara Twiltermsup.
"KBS has no expectation as to when the plant will be completed."
The new plant is capable of processing 12,000 tonnes of sugar cane per day and includes an 18-megawatt power plant in Nakhon Ratchasima's Sikhiu district.
While the pandemic has slowed down the new development project, the company continues to see revenue growth by trading electricity and steam the past three years, Mr Issara said.
Subsidiary Khonburi Power Plant is running a power plant, fuelled mainly by bagasse, in Sikhiu district.
He said revenue steadily increased from 689 million baht in 2017 to 973 million last year.
The company's financial strength is being leveraged to launch Khonburi Sugar Power Plant Infrastructure Fund (KBSPIF), worth 2.8 billion baht, scheduled to be available from Aug 4-7, to expand its investment.
"The price of the IPO shares are set at 10 baht per share," said Pijittra Trirattanathada, Krungthai Bank's senior vice-president for investment banking.
Returns for investors will be based on revenue from the electricity sales of 22MW and 3.5MW to Electricity Generating Authority of Thailand and KBS, respectively, under 20-year contracts, scheduled to end in 2039.