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RATCH Group issues the 8-Billion Baht Green Bond, Pursuing goal of renewables and electric train project investment and financial cost decrease

Nonthaburi – Ratch Group Public Company Limited will issue 8-billion-baht the Senior and Unsecured Green Debentures (or Environmental Conservation Bond) with Debenture Holders’ Representative for investment, repayment of existing loans in part and/or in whole of the new or existing eligible green projects related to environmental conservation, including the wind power plant projects in Australia and the Pink-Line and Yellow-Line electric monorail projects. The debentures’ offering as private placement to institutional investors and high net worth will be transacted on November 4, 2020. The series of Green Debentures consists of four tranches with average maturity of 11 years, namely;

  1. Tranche1: three-year debentures with coupon rate of 1.32% per year, issued amount of one billion baht and maturity date on 4 November 2023
  2. Tranche2: five-year debenture with coupon rate of 1.76% per year, issued amount of 1.5 billion baht and maturity date on 4 November 2025.
  3. Tranche3: 10-year debenture with coupon rate of 2.61% per year, issued amount of 1.5 billion baht and maturity date on 4 November 2030.
  4. Tranche4: 15-year debenture with coupon rate of 2.94% per year, issued amount of 4 billion baht and maturity date on 4 November 2035.

The company will repay full amount of principal on the maturity date of each debenture. As of 1 October, TRIS Ratings assigned AAA rating and Stable Outlook for the debentures.

Mr. Kijja Sripatthangkura, Chief Executive Officer of RATCH Group PCL, said that the Green Bond issuance is the magnificent accomplishment of the company’s financing management planning. This is the company’s first fund raising in the environmental conservation bond market, obviously growing along with low-carbon society development and sustainability development. Providing rationale cost, green bond market would be more favorable funding alternative for development and investment in eco-friendly projects. The 1.4 billion baht proceed from this issuance will fund the Pink-Line and Yellow-Line electric monorail projects, which are scheduled for commercial operation in the year 2022. The other 6.6-billion baht amount will be used in the two under-construction wind farm projects in Australia including the 214.2-MW Yandin project (70% equity owned by RATCH) scheduled to commercial operation in November this year, and the 226.8-MW Collector project with operation schedule in the first quarter next year.

"RATCH’s Green Bonds have been highly interested and well responded by many institutional investors and high net worth such as life insurance firms, asset management companies, government related funds, cooperatives and financial institutions proven by bid-coverage-ratio of 9 times of total amount of debentures and over 13-time demand for some particular tenors. The company appreciates all investors for their confidence and overwhelming attention leading to the order book of the company’s Green Debentures marked the highest demand ever year-to-date among green bonds issued by private companies. This success also reflects the investors’ trust in RATCH’s green business approach and we optimistically regard green bond as a financing choice for accomplishing 2,500-MW renewable project goal in 2025, as well as driving significant growth of clean transportation and low-carbon related projects as per RATCH’s business strategy plan. Last but not least, the green bond issuance is aligned and responded to our greenhouse gas management commitment. Importantly, it tangibly lowers the company’s overall financial cost to reasonable level,” said Mr. Kijja.

The issued Green Debenture is arranged according to the Green Financing Framework and also received an Assurance Report from KPMG Phoomchai Audit Limited. The Company has appointed Bangkok Bank Public Company Limited, Bank of Ayudhya Public Company Limited, Siam Commercial Bank Public Company Limited, and Standard Chartered Bank (Thai) Public Company Limited as the joint-lead arrangers for this issuance.

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