The Securities and Exchange Commission (SEC) has approved the filing of Wind Energy Holding Company Limited to offer 2-year debentures maturing in 2026, with an interest rate of 6.75% per annum. The total value is not exceeding 500 million baht, offered to institutional investors and/or high net worth investors. The subscription period is set for July 11-12 and 15. The funds will be used for business expansion and development of new projects both domestically and internationally.
Mr. Nuttpasint Chet-udomlap, Chief Executive Officer of Wind Energy Holding Company Limited or WEH, Thailand's No. 1 wind power producer, revealed that on July 10, 2024, the Securities and Exchange Commission (SEC) approved the draft registration statement for the company's debt offering. The company had applied to offer Wind Energy Holding Company Limited's debentures No. 1/2024, with a 2-year maturity due in 2026, offering a fixed interest rate of 6.75% per annum, with interest payments every 3 months throughout the debenture's term. The offering is for institutional investors and/or high net worth investors during July 11-12 and 15, 2024, with the debentures to be issued on July 16, 2024.
"WEH has outstanding performance from all 8 power plants with a total installed capacity of 717 megawatts, generating revenue of more than 10 billion baht per year and net profit of over 5 billion baht per year for three consecutive years from 2021-2023. We expect to recognise revenue of more than 10 billion baht in 2024 as well. Six of our wind power plants still receive an Adder of 3.5 baht per kilowatt until 2027-2029, covering the term of this debenture. The company has stable revenue that is not volatile to economic conditions because we have long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT). Furthermore, the company has never defaulted on debt payments."
The company has a 5-year goal to increase its total production capacity to 1,500 megawatts from the current 717 megawatts, aiming to boost revenue to 15,000 million baht per year from the current level of over 10,000 million baht annually. Currently, there are two projects combining wind and solar power with a total capacity of approximately 120 megawatts that are preparing to sign Power Purchase Agreements (PPAs) with EGAT. Additionally, two new projects have already passed qualification reviews by the Energy Regulatory Commission (ERC). The company is also developing more than 10 renewable energy projects both domestically and internationally, preparing to compete whenever the government announces new rounds of power purchase.
The company has a 5-year goal to increase its total production capacity to 1,500 megawatts from the current 717 megawatts, aiming to boost revenue to 15,000 million baht per year from the current level of over 10,000 million baht annually. Currently, there are two projects combining wind and solar power with a total capacity of approximately 120 megawatts that are preparing to sign Power Purchase Agreements (PPAs) with EGAT. Additionally, two new projects have already passed qualification reviews by the Energy Regulatory Commission (ERC). The company is also developing more than 10 renewable energy projects both domestically and internationally, preparing to compete whenever the government announces new rounds of power purchase.
Regarding the details of this debenture issuance, these are named, unsubordinated, unsecured debentures with a debenture holders' representative. The total offering value does not exceed 400 million baht, with additional reserved debentures not exceeding 100 million baht, bringing the total value to no more than 500 million baht. The purpose of issuing these debentures is to prepare for business expansion, invest in new high-potential projects, and use as working capital.
Interested investors can contact any of the 8 debenture underwriters, which include: Beyond Securities Public Company Limited, DAOL Securities (Thailand) Public Company Limited, Globlex Securities Company Limited, Maybank Securities (Thailand) Public Company Limited, Phillip Securities (Thailand) Public Company Limited, Pi Securities Public Company Limited, Trinity Securities Company Limited, UOB Kay Hian Securities (Thailand) Public Company Limited. The debenture registrar is Bangkok Bank Public Company Limited, and DAOL Securities (Thailand) Public Company Limited serves as the debenture holders' representative.