BGrimm Power’s recent Bt6.7-billion two-tranche debenture issue has been successfully subscribed, reflecting the confidence in one of Thailand’s leading private power producers.
Executives of the listed company, along with Siam Commercial Bank and Phatra Securities – the two underwriters – on Tuesday celebrated the closing of the subscription period, which saw institutional and high-net-worth investors taking up the entire allotments.
“It’s a mission completed and we have secured the funds to support our refinancing programme and cash-flow management,” BGrimm president Preeyanart Soontornwata declared.
The amortised debentures, issued on May 31 by BGrimm BIP Power 1 Ltd and BGrimm BIP Power 2 Ltd, both subsidiaries of B.Grimm, came in two equal tranches of Bt3.35 billion.
The debt instruments were assigned an “A-” rating with “Stable” prospect by TRIS Rating.
With a 15-year maturity, the debentures, classified as senior bonds with debenture holders’ representatives, carry a constant interest rate of 3.95 per cent per annum, payable every six months.
The funds from the debenture issue will result in a financing-cost saving of Bt350 million, or 1.2-1.6 per cent, for the two subsidiaries, Preeyanart said.