EDL-Generation Public Company (EDL-Gen), a leading clean energy producer in Lao PDR has revealed its plans to secure energy for ASEAN. The company announced a leap in operational growth following additional revenue from two independent power producers (IPP).
In the first six months of the year, the company was able to generate a net profit of 1,146.2 million baht with a growth of 1707%. EDL-Gen has completed the filing and is now ready to issue two series of bonds, with a total amount of 3,700 million baht and coupon rates of 5.90% and 6.50% over three or four years, respectively. The bonds will be offered to institutional investors and/or high-net-worth investors. It will be available for subscription on 20-22 September.
Mr. Vanhseng Vannavong, Deputy Managing Director and Chief Financial Officer of EDL-Gen, the major producer of clean energy in Lao PDR revealed that the country’s current strategic economic plan has emphasised hydroelectric energy production to enhance the stability in both domestic and regional energy supply. EDL-Gen is committed to fulfilling the objective by investing in electricity-producing projects and independent power producers (IPP). EDL-Gen expects to increase the current production capacity of 1,683 megawatts up to 2,435 megawatts, by 2029.
In addition, EDL-Gen will strategically increase the potential of its production with the allocation of more hydroelectricity plants around the country. This would not only help to serve growing domestic demand but also generate extra revenue by selling the electricity to ASEAN countries.
In 2021, EDL-Gen’s income leapt up from the previous year’s results, approximately 5,956 million baht, thanks to the La Nina phenomenon. The high volume of rainfall generated by La Nina is expected to continue into Q3 of this year, increasing water inflow to many of EDL-Gen’s hydroelectric dams.
Mr. Kavin Hetrakul, the Managing Director of Twin Pine Group, an advisory firm in the bond issuance process, said that EDL-Gen has submitted its filing and prospectus to the Security Exchange Commission (SEC) for permission to sell (2/2021) two series of private-placement senior and unsecured bonds, with a bondholders’ representative, for a total amount of not more than 3,700 million baht. The first series is made up of three-year bonds with a coupon rate of 5.90%, payable quarterly, maturing in 2024. The second series is a four-year bond with a coupon rate of 6.50% payable quarterly, maturing in 2025. The proceeds will be used to refinance bonds maturing in 2021.
Both series of bonds will be offered to institutional investors and/or high-net-worth investors, at a par of 1,000 baht with a minimum subscription of 100 units.
Interested parties can contact six underwriters, KTBST Securities Public Company Limited, Globlex Securities Limited, Phillip Securities (Thailand) Public Company Limited, Merchant Partners Securities Public Company Limited, UOB Kay Hian Securities (Thailand) Public Company Limited and AIRA Securities Public Company Limited.
The subscription date will be between 20 and 22 September 2021.