EXIM Thailand, ICBC (THAI) and SuMi TRUST Bank (THAI) to offer financial support to BCPG’s renewable energy projects in Laos and Japan
BCPG Public Company Limited, a leader in the renewable energy business in Thailand and Asia-Pacific, drives its business growth with financial support from three institutes - Export-Import Bank of Thailand (EXIM Thailand), Industrial and Commercial Bank of China (ICBC (THAI)) and Sumitomo Mitsui Trust Bank (SuMi TRUST Bank (THAI)) - for hydropower projects in Laos and solar power projects in Japan.
According to the agreement, BCPG Indochina Co., Ltd., a subsidiary of BCPG, will gain the total financial support of THB 5,500 million (USD 172 million) from ICBC (THAI) and EXIM Thailand for two hydropower projects in Laos, with a full production capacity of 114 MW – Nam San 3A (69 MW) and Nam San 3B (45 MW).
EXIM Thailand will also finance three solar power projects of BCPG, with a total production capacity of 87 MW, in Japan – 27-MW Chiba1 project in Chiba, 32-MW Komagane project in Nagano and 28-MW Yabuki project in Fukushima – with the total financial support of THB 6,356 million (JPY 21,188 million). The Komagane project and Yabuki project will be financially supported by EXIM Thailand, with a financial facility agreement of JPY 14,723 million for three years. The Chiba1 project will be jointly financed by EXIM Thailand and SuMi TRUST Bank (THAI), with a financial facility agreement of JPY 6,465 million for three years.
According to Bundit Sapianchai, BCPG President, the Company’s two hydropower plants in Xiangkhouang Province, Laos, with a total production capacity of 114 MW, have started the revenue recognition since September 2019 from selling electricity to Électricité du Laos (EDL). However, in 2022, the Company plans to adopt a new power purchase model – Cross Border PPA - by selling electricity generated from hydropower plants in Laos to Vietnam Electricity (EVN). The financial support will be distributed from ICBC (THAI) and EXIM Thailand with ICBC (Laos) as an account agent in Laos.
The three solar power plants in Japan - Chiba1 project, Komagane project, and Yabuki project – are now under development and expected to start the commercial operations in 2021-2022. After a three-year financial facility agreement with EXIM Thailand and SuMi TRUST Bank (THAI), the Company will adopt the Project Financing scheme for the three solar power plants by selecting the financial institution in Japan who offers the best solution. Currently, a few Japanese financial institutes have interested in the three projects.
“The financial support from the three institutes is in line with BCPG’s financial strategy in terms of investment fund stability for the continuous growth of the Company,” said Bundit