CK Power debentures 2 times oversubscribed
published : 21 Oct 2021 at 13:49
CK Power Plc (CKP) has successfully issued its 2-billion-baht debentures, which received overwhelming demand from investors.
Thanawat Trivisvavet, managing director of CK Power Plc, said the company had issued debentures No. 2/2021 worth two billion baht to institutional investors and high net worth investors. The debentures have been well received among the investors with 2-time oversubscription, reflecting the investors’ confidence in CK Power and its management’s capability.
The offered debentures are name-registered, unsubordinated, and unsecured debentures, with debentureholders' representative and the issuer’s right to early redemption. The debentures have a tenure of 10 years at the interest rate of 3.58% per annum, paid every six months until maturity, and received a credit rating of "A-/Stable" by TRIS Rating Company Limited ("TRIS Rating") on September 15.
Mr Thanawat said that part of the proceeds from the issuance of the new debentures will go towards paying off short-term loans from financial institutions, while the rest is earmarked for use as working capital in the Company’s operations.
"The success of this debenture issuance is partly due to the company's efficient management of its power plants. In the first half of 2021, CK Power recorded a total revenue of 4.39 billion baht, an increase of 803.1 million baht or 22.4% from the same period last year, and a net profit of 821.6 million baht, an increase of 289.1% from the same period last year.”
Meanwhile, Xayaburi Power Company Limited (XPCL), the owner and operator of the Xayaburi Hydroelectric Power Plant in Laos under CK Power Group, is currently undergoing a credit rating process in preparation for debenture issuance in 2022. XPCL is expected to be able reduce its financial cost, one of its primary expenses, if the debenture issuance is well received by investors.
"CKPower would like to express its gratitude to all institutional and high net worth investors for their confidence in the Company and its management capabilities, which reflect the Company’s strength, stability, and sustainability in the generation of revenue, profit, and cash flow as well as its sincere commitment to society and the environment,” said Mr Thanawat.
In 2022, the company will still focus on developing and conducting feasibility studies on other potential hydroelectric power projects, while also looking for opportunities to invest in renewable and clean power projects both domestically and internationally, he said.