BGRIM secures $28m financing for Cambodia solar farm from top financiers, confirming a vote of confidence in BGRIM’s strength and viability

BANGKOK, Nov 2021: B.Grimm Power Public Co Ltd (BGRIM), Thailand’s leading industrial power producer, has secured US$28.15 million (938 million baht) in a syndicated loan from three top Thai banks to finance its solar energy project in Cambodia.

Under the 15-year accord signed on 28 October, Kasikorn Bank (KBANK), Export-Import Bank of Thailand (EXIM Thailand), and Bangkok Bank (BBL) have made available the fund to Ray Power Supply Co Ltd (RPS), a wholly-owned subsidiary of B.Grimm Solar Power 1 Co. RPS operates the 39-megawatt solar photovoltaic facility in Banteay Meanchey province that came on stream in December last year.

“The loan is a vote of confidence by top Thai financial institutions in BGRIM at the time when fund raisings in general are significantly hampered by the Covid-19 effects,” said Dr Harald Link, Chairman and President of BGRIM, adding, “The RPS’s ground-mounted solar power facility is considered a success for it being completed on schedule amidst many restrictions, including the Covid-19 pandemic effects and severe floods in the construction area throughout 2020.”

Its output has begun to supply to the Electricite Du Cambodge (EDC)’s grid on 15 December 2020 under a 20-year agreement. RPS is the first solar energy project in Cambodia which has secured firm power supply guarantee from the Cambodian government.

Tipakorn Saiphatana, Executive Vice President of Kasikorn Bank, said the lending to RPS is consistent with the bank’s policy promoting investment for sustainability and support customers’ transition to a net zero emissions economy.

“Kasikorn Bank believes that the project will play an important role in contributing to the development of highly efficient and reliable electricity services and utilities, which is an important foundation for Cambodia’s economic growth. With the potential of BGRIM, which has expertise in developing efficient power plant projects and innovative technologies, the company has cost advantages, global business partners and being recognised internationally,” he said

Dr Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), said the RPS project fits well with the bank’s drive to support overseas investment of Thai outfits. This is in line with EXIM Thailand’s mission towards becoming the development bank of Thailand, connecting and driving trade and investment between Thailand and its trading partners. 

“EXIM Thailand has constantly developed forms of financial support and cooperation with the public and private sectors to propel businesses that have a positive impact in the economic, social and environmental dimensions. This is in line with the Sustainable Development Goals that all countries must work together to create a better world and raising the quality of life of the population in the long term,” added Dr Rak.

Niraman Laisatit, Senior Executive Vice President in charge of Corporate Banking of Bangkok Bank, noted that the bank has already supported BGRIM in the development of various projects both at home and abroad for more than 26 years, starting with the Amata B. Grimm Power 1 scheme in 1995.

“Bangkok Bank is very pleased to have another opportunity to support BGRIM with the RPS solar farm scheme that is part of Cambodia’s development in infrastructure renewable energy,” she stated.

Dr Link pointed out that the RPS development is a response to changing energy demand patterns.

That has led various organisations especially those on international levels to come up with a policy towards reducing carbon dioxide generation in the long term and embracing renewable energy. Importantly, the RPS venture contributes to BGRIM’s target of expanding the share of clean energy in its megawatt portfolio and fulfilling the company’s mission statement of “Empowering the World Compassionately.”

Currently, B.Grimm Power has a total of 50 power plants in commercial operation. The company aims to ramp up its total installed capacity from 3,058 MW at the end of 2020 to at least 7,200 MW of secured PPA by 2025 and further to 10,000 MW by 2030 with an annual revenue of more than 100 billion baht being targeted. More importantly, B.Grimm Power is moving strenuously towards realising net-zero carbon emissions by 2050.