The Green Debentures are the first to be offered for sale by XPCL and have been assigned a rating of BBB+/stable by TRIS Rating Company Limited, while XPCL received a credit rating of A-/stable. The Green Debentures consist of three tranches, namely Tranche 1 Debentures in the amount of Baht 4,031 million with a fixed interest rate of 4.50% per annum and a tenure of 3 years maturing in 2025; Tranche 2 Debentures in the amount of Baht 1,258 million with a fixed interest rate of 4.75% per annum and a tenure of 4 years maturing in 2026; and Tranche 3 Debentures at the amount of Baht 3,106 million with a fixed interest rate of 5.00% per annum and a tenure of 5 years maturing in 2027.
Mr. Thanawat said the proceeds from the issuance of these fixed rate debentures will go towards refinancing of XPCL's outstanding floating rate loans to manage risks of interest rate volatility, which will also lower XPCL's average financial costs and improve profitability during this rising interest rate environment.
"CKPower would like to express its gratitude to institutional and high-net-worth investors in Thailand for recognizing and trusting our determination, our ESG-centric management system as well as our commitment to clean and eco-friendly energy, and most of all, for overwhelmingly supporting XPCL's first-ever issuance of the Green Debentures in Thailand despite the ongoing market volatility," said Mr. Thanawat.
XPCL, a company incorporated in the Lao PDR, has been awarded a concession by the Lao government to design, develop, construct, and operate the Xayaburi Hydroelectric Power Plant, which has an installed capacity of 1,285 MW. The concession period lasts 31 years from the commercial operation date, which was October 29, 2019.
XPCL generates approximately 7,600 GWh per year of hydroelectric power, which is considered an eco-friendly form of renewable energy, thereby avoiding the emissions of CO2 by around 3.8 million tCO2e. The green debentures were issued under XPCL's Green Bond Framework, which has been reviewed by DNV, the world's leading independent expert in assurance and risk management, to be in line with Green Bond Principles 2021, Green Loan Principles 2021, and ASEAN Green Bond Standards 2018 - a testament to XPCL's environmental standards.
In the first three months of 2022, XPCL posted a revenue of Baht 2,735 million, a 20% year-over-year increase from Baht 2,272 million of the previous year, and earnings before interest, taxes, depreciation, and amortization (EBITDA) of Baht 2,276 million, a 6% year-over-year increase.
Source: CK Power