Xayaburi Power achieves remarkable success with oversubscribed THB 3.5 billion green bond issuance.

Xayaburi Power achieves remarkable success
with oversubscribed THB 3.5 billion green bond issuance,
underscoring investors’ confidence and commitment to low-carbon society

Mr.Vorapote Uchoepaiboonvong, Managing Director of Xayaburi Power Company Limited (XPCL) or the Xayaburi Hydroelectric Power Plant, an associate company of CK Power Public Company Limited, or CKPower (stock symbol: “CKP”), one of the region’s largest renewables-based power producers, announced the successful offering of its name-registered, unsecured, and unsubordinated green bonds no. 1/2023 in Thai baht with a debentureholders’ representative on October 20, 24, and 25. This success underscores investors’ confidence in XPCL and reinforces CKPower’s dedication to clean energy-based electric power production, aiming to enhance Thailand's transition to renewable energy.

Mr.Vorapote expressed gratitude to all institutional and high-net-worth investors for their continued trust and confidence in both its bonds and robust business operations as well as extended his appreciation to the lead arrangers for contributing to the success. XCPL plans to use the proceeds to repay outstanding floating rate debt to reduce risks of interest rate volatility and financial costs, with the ultimate goal of further strengthening its financial position.

The green bond offering garnered significant interest, resulting in the final issue size at THB 3,500 million, consisting of the initial size of THB 2,000 million plus a greenshoe option of THB 1,500 million.

The green bonds were divided into three tranches:

Tranche 1, with a tenor of 3 years maturing in October 2026 at the fixed interest rate of 5.15% per annum;

Tranche 2, with a tenor of 4 years maturing in October 2027 at the fixed interest rate of 5.30% per annum; and

Tranche 3, with a tenor of 5 years maturing in October 2028 at the fixed interest rate of 5.55% per annum.

The debentures fully complied with the Green Bond Principles 2021 and ASEAN Green Bond Standards 2018 and were audited by DNV, the world’s leading classification society that serves as an independent external reviewer.

Tris Rating Company Limited assigned a BBB+ rating to XPCL’s green bonds, which were made available to institutional and major investors. The joint lead arrangers for the offering included Bangkok Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Krungthai Bank Public Company Limited, Kiatnakin Phatra Securities Public Company Limited, and Krungthai XSpring Securities Company Limited.

XPCL, an associate company in which CKPower holds a 42.5% stake, is a registered company in the Lao PDR and 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 and predominantly supplies its generated electricity to Electricity Generating Authority of Thailand (EGAT). The concession is valid for 31 years from the commencement of commercial operations on October 29, 2019. Annually, XPCL produces approximately 7,400 million GWh of eco-friendly electricity from hydropower, helping to avoid the emissions of CO2 by around 3.7 million tCO2e.