The Nation

business

Smaller
Larger

Ratch subsidiary completes issuance of US dollar senior notes

Ratchaburi Electricity Generating Holding announced that RH International (Singapore) Corporation (RHIS), a wholly owned subsidiary located in Singapore, completed its issuance and offering of five-year senior notes of US$300 million at a fixed interest rate of 3.5-per-cent per annum, due in 2019, to overseas investors.

Ratch is the guarantor of the notes and Standard Chartered Bank has been appointed as the book runner. This transaction marks Ratch's debut in US dollar bond issuance under a newly established $1-billion Euro Medium Term Note (EMTN) programme.

Pongdith Potchana, Ratch's chief executive officer, said the EMTN programme was initiated in line with the company's new business structure under which RHIS is identified as its strategic arms-length unit for expansion of overseas investment.

To date, RHIS has invested about $337.5 million (Bt10.9 billion) in Ratch-Australia Corporation (RAC) and EDL- Generation Public Company.

The funds raised from the notes offering will serve RHIS's future investments. To reach a target of 9,700-megawatt generating capacity according to the business strategy plan, Ratch is putting more emphasis on overseas opportunities in many markets including Laos, Australia, Myanmar, Cambodia, Vietnam, the Philippines, Indonesia and Japan, as well as others in the Asia-Pacific region.

This is the first time Ratch has participated in the US dollar bond market, and the transaction has seen a successful response from investors.

Ratch is also considered the first Thai corporate to initiate an EMTN programme and the first Asean investment corporate issuer this year.

The funds raised from the issuance $300 million worth of Series 1 notes will be used for the group's corporate purposes, including working capital, capital expenditures, investment activities and short-term debt refinancing. The Series 1 notes were assigned ratings of "Baa2" by Moody's and "BBB" by Standard and Poor's.

Ratch, established in 2000, is a leading independent power producer (IPP) in Thailand. The company currently claims equity capacity of 6,543MW from operating facilities and developing projects in Thailand and abroad.

According to its business structure, Ratch recognises 4,834.5MW equity capacity of IPPs and SPPs (small power producers) in Thailand, 102.45MW equity capacity of domestic renewable projects and 1,606.02MW equity capacity of international projects.

Last year, the company recorded Bt53.493 billion revenues and Bt6.187 billion profits, representing Bt4.27 per share. Its total assets, as of December 31, booked Bt88.903 billion.


Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.