Thai Baht 938m loan secured for B.Grimm Power’s solar energy project in Cambodia
B.Grimm Power Plc (BGRIM), Thailand’s leading industrial power producer, has secured US$28.1 million (938 million baht) in a syndicated loan from three top Thai banks to finance its solar energy project in Cambodia.
Under the 15-year accord signed on Oct 28, Kasikornbank (KBank), Export-Import Bank of Thailand (Exim Thailand) and Bangkok Bank have made available the funds to Ray Power Supply Co (RPS), a wholly-owned subsidiary of B.Grimm Solar Power 1 Co.
RPS operates the 39-megawatt solar photovoltaic facility in Banteay Meanchey province that came on stream in December last year.
“The loan is a vote of confidence by top Thai financial institutions in BGRIM at a time when fundraisings in general are significantly hampered by the effects of Covid-19,” said Harald Link, chairman and president of BGRIM.
“RPS’s ground-mounted solar power facility is considered a success for being completed on schedule amid many restrictions, including the pandemic’s effects and severe floods in the construction area throughout 2020,” Mr Link added.
The facility’s output began supplying the Electricite Du Cambodge (EDC)’s grid on Dec 15, 2020 under a 20-year agreement. RPS is the first solar energy project in Cambodia which has secured a firm power supply guarantee from the Cambodian government.
Tipakorn Saiphatana, executive vice-president of Kasikornbank, said the loan to RPS is consistent with the bank’s policy promoting investment for sustainability and supporting customers’ transition to a net zero emissions economy.
“KBank believes that the project will play an important role in contributing to the development of highly efficient and reliable electricity services and utilities, which is an important foundation for Cambodia’s economic growth,” Mr Tipakorn said.
“With the potential of BGRIM, which has expertise in developing efficient power plant projects and innovative technologies, the company has cost advantages, global business partners and is recognised internationally,” he added.
Rak Vorrakitpokatorn, president of Exim Thailand, said the RPS project fits well with the bank’s drive to support the overseas investment of Thai outfits.
“Exim Thailand has constantly developed forms of financial support and cooperation with the public and private sectors to propel businesses that have a positive impact in the economic, social and environmental dimensions. This is in line with the sustainable development goals that all countries must work together towards to create a better world and raise the quality of life of the population in the long term,” Mr Rak added.
Niraman Laisatit, senior executive vice-president in charge of corporate banking at Bangkok Bank, noted that the bank has already supported BGRIM in the development of various projects both at home and abroad for over 26 years, starting with the Amata B. Grimm Power 1 scheme in 1995.
Mr Link pointed out that the RPS development is a response to changing energy demand patterns.
That has led various organisations, especially those at an international level, to come up with a policy towards reducing carbon dioxide generation in the long term and embracing renewable energy.
Importantly, the RPS venture contributes to BGRIM’s target of expanding the share of clean energy in its megawatt portfolio and fulfilling the company’s mission statement of “Empowering the world compassionately”.
Currently, BGRIM has a total of 50 power plants in commercial operation. The company aims to ramp up its total installed capacity from 3,058MW at the end of 2020 to at least 7,200MW of secured PPA by 2025 and further to 10,000MW by 2030 with an annual revenue of more than 100 billion baht being targeted.