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RATCH Group injected BHT1.789-billion for FRD’s shares, enabling indirect shareholding of Indonesia Asahan-1 HPP to 47.89%

Nonthaburi – RATCH Group Public Company Limited announced the success of investment expansion in 180-megawatt Asahan-1 Hydroelectric Power Plant (“Asahan-1 HPP”) in Indonesia. Accordingly, RH International (Singapore) Corporation Limited (“RHIS”), a wholly-owned subsidiary, has acquired 13,544,257 ordinary shares (representing 40% stake) of Fareast Renewable Development Pte. Ltd. (“FRD”) from Hydro Sumatra International Pte. Ltd. (“HSI”). Today, both parties have entered into the share purchase agreement valued at USD 54.31 million, equivalent to 1.789 billion baht. The deal has been furthered after previously RHIS acquired 50% stake of FRD in December 2018. As a result, the company’s equity holding in FRD increased to 90% and indirectly held 47.89% stake in Asahan-1 HPP through FRD.

Fareast Renewable Development Pte. Ltd. currently owns 53.21% shares of PT Bajradaya Sentranusa (BDSN”), an Independent Power Producer who operates Asahan-1 HPP, while 36.61% stake held by PT Pembangkitan Jawa Bali (“PJB”), a subsidiary of PT Perusahaan Listrik Negara (“PLN”), Indonesia’s state electricity authority PLN, 5% owned by International Finance Corporation (“IFC”), and the rest hold by other shareholders.

Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited said that the investment in FRD not only serves the company’s capacity growth target for renewable energy development, but also supports success of business restructure of FRD’s shareholders. This positively results to an increase of profit-sharing revenues from Asahan-1 HPP through RFD according to equity portion. In the first 9-month of 2021, RATCH realized 185.38-million-baht profit-sharing revenues from FRD, higher 18% from the same period of 2020.

“For funding this investment, the company has already arranged a portion of sustainable loan which was entered the agreement with IFC in early July. Additionally, it reflects our effort in driving renewable energy capacity towards the company’s target of 2,500 megawatts in 2025 and 4,000 megawatts in 2030, which a hydroelectric power project is on our focus asides from wind, solar, and biomass power projects. As committed to renewable energy development, the company intends to reduce greenhouse gas emission in order to lessen effect of climate change. In addition to environmental benefit, Asahan-1 HPP also helps secure the power grid in North Sumatra province, increasing rate of people access to electricity in North Sumatra, as well as enhancing living quality of people and society at large”, added Ms. Choosri.

The 180-megawatt Asahan-1 project is a run-of-river hydroelectric power plant located on Asahan River in North Sumatra province. It has commenced operation since January 2011 and distributed 1,175 GWh of electricity to PLN under a long-term Power Purchase Agreement (2011-2040). After this investment, the company will recognize 86.20-megawatt capacity of Asahan-1 HPP boosting the company’s total renewable energy capacity to 1,345.51 megawatts, accounting for 16.3% of the total invested capacity.

Recently, the Asahan-1 HPP was awarded the Renewable Energy Deal of the Year- Hydro from The Asset Triple A Infrastructure Awards 2021 regarding its loan facility led by IFC as a lead arranger and lender. Asahan-1 HPP as a renewable infrastructure dramatically helps strengthen North Sumatra’s power system stability, and also ease climate change impact.

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