- Press Releases
July 19 (Renewables Now) - The Asian Development Bank (ADB) is supporting the plans of Thai firm B. Grimm Power Public Company (SET:BGRIM) to diversify its energy mix and invest more in renewables with loans and an equity investment.
The independent power producer (IPP) has just completed its initial public offering (IPO) on the Stock Exchange of Thailand (SET), raising more than THB 10.4 billion (USD 309m/EUR 268m). The ADB said today it has subscribed to 123 million shares worth THB 1.97 billion. It will also administer a USD-20-million loan for B. Grimm from the Canadian Climate Fund.
The Thai company is operating 12 gas-fired power plants and 15 solar photovoltaic (PV) parks. It has embarked on a plan to boost the share of renewables in its portfolio to 30% from 10%. Investments are planned at home and within the Association of Southeast Asian Nations (ASEAN) countries.
B. Grimm is currently selling 65.1 million over-allotment shares at THB 16, the price of the IPO.
ADB said its investment as part of the IPO would support 114 MW of solar and 16 MW of wind power projects in Thailand, and solar, wind, and other renewable energy projects in Cambodia, Indonesia, the Lao People’s Democratic Republic, Myanmar, Philippines, Thailand, and Vietnam.
The loan from Canada is seen to support the diversification of ASEAN’s energy mix through solar-plus-storage and other renewable energy projects. It will also help B. Grimm Power address legal, technical, and regulatory challenges in countries in the region.
ADB noted that it is planning to provide later a corporate loan facility to the Thai company for future ASEAN gas-fired and renewable power projects.
According to the Organisation for Economic Co-operation and Development (OECD), electricity demand by ASEAN countries will be growing by more than 8% per year between 2009 and 2030.
(THB 10 = USD 0. 297/EUR 0.258)