Gulf Group wins Bt39bn syndicated loan

Corporate October 25, 2012 00:00

By The Nation

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Eight financial institutions have joined the loan syndication worth Bt39 billion to Gulf Group, to finance a gas-fired combined cycle power plant in Ayutthaya with capacity of 1,600 megawatt.


The power plant in Rojana Industrial Park is under the Independent Power Producer (IPP) scheme. It will be operated by Gulf JP UT Co Ltd. Using natural gas as its primary fuel, the power plant will sell all of the electricity it generates to the Electricity Generating Authority of Thailand (EGAT), under a 25-year Power Purchase Agreement (PPA). The power plant is expected to start commercial operations in 2015. 
Under Thailand’s Power Development Plan, the country’s current electricity generating capacity of 34,000 megawatts must be increased to 56,000 megawatts within the next 10 years in order to match the anticipated rise in demand for power.
The loan syndication was sealed on Oct 24 with four Thai banks - Kasikornbank, Bangkok Bank, Siam Commercial Bank and Land and Houses Bank. Four foreign banks joining the deal are Japan Bank for International Cooperation (JBIC), Asian Development Bank (ADB), The Bank of Tokyo-Mitsubishi UFJ (BTMU) and Sumitomo Mitsui Banking Corporation (SMBC). 
Gulf JP Group is one of the country’s high-potential firms in the energy industry, now developing nine power plants with a combined capacity of 3,990 megawatts.