SET Senior Executive Vice President Santi Kiranand said that BRRGIF would list on SET and start trading in the Resources industry group, Energy & Utilities sector. BRRGIF offered 350 million units at a price of THB 10.30 per unit for a total of THB 3.61 billion to Buriram Sugar PCL (BRR) eligible existing shareholders, the general public, and institutional investors during July 7-27, 2017. BBL Asset Management Co., Ltd. is the fund manager and Maybank Kim Eng Securities (Thailand) PCL is the financial advisor, sales manager, and underwriter.
BRRGIF has invested in the rights of net income of BRR's subsidiaries, which are Buriram Energy Co., Ltd. (BEC) for a period of 11 years ending August 10, 2028; and Buriram Power Co., Ltd. (BPC) for a period of 18 years ending April 6, 2035. These are the so-called "very small power producers" or VSPP which use bagasse (sugarcane residue) as main fuel. Each of these two biomass power plants has a capacity of 9.9 megawatts, with a total capacity of19.8 megawatts. Power purchase agreements have been made with the Provincial Electricity Authority using the Feed in Tariff (FiT) rate, with a maximum capacity of 8 megawatts per power plant for a total of 16 megawatts, including steam power for a capacity of 85 tons per hour from BEC and 100 tons per hour from BPC.
Peerapong Jirasevijinda, Chief Executive Officer at BBL Asset Management Co., Ltd. said that BRRGIF is a fund that will enable investors to invest in the Buriram Sugar Group's biomass power plant infrastructure business with stable revenues from electricity sales contracts with the Provincial Electricity Authority, the main customer. As such BRRGIF can be considered an investment choice that can generate good returns in the form of regular dividends.
BRRGIF dividend policy is to pay dividends to unit holders as specified in the fund management project plan not less than twice a year in case the fund has sufficient retained earnings. For each fiscal year, BRRGIF will pay no less than 90% of the adjusted net profit.BRRGIF also has an investment return policy for unit holders in the form of capital reduction when the fund has excess liquidity. BRRGIF's three major unit holders after IPO are: Buriram Sugar Public Co., Ltd. (29.61 percent), LAND and HOUSES Bank Public Co., Ltd. (10.00 percent), and Sareewiwatthana Group (5.74 percent).
For more information on BRRGIF, please see the fund's prospectus at the Securities and Exchange Commission's website at www.sec.or.th ; and for general information, please visitwww.brrgif.com , as well as www.set.or.th .