Malaysia: KNM Group to derive 70 per cent of revenue from renewable energy

Malaysia: KNM Group to derive 70 per cent of revenue from renewable energy

Diversified process equipment manufacturer KNM Group Bhd expects to see 70
per cent of its revenue flowing from renewable energy within the five years
beginning 2017.

Its renewable energy business will be mostly derived from its Thailand-based
business unit, Impress Ethanol Co Ltd (IEL), of which KNM Group is a
majority shareholder with a 72 per cent stake.

"We have mostly been a contract player across all our business segments
since our establishment in 2003," said its group chief executive officer,
Lee Swee Eng, earlier today.

"By having a source of recurring income through our renewable energy
business, we will be able to achieve more stability in our income stream,
rather than be impacted again and again by economic cycles," she said.

Lee also explained that IEL is expected to be fully operational in early
2017.

"Thus, within five years from 2017, we are expecting to have up to 70 per
cent of our income coming from our renewable energy unit in Thailand, as
well as some parts of the United Kingdom," Lee added.

To that end, the group today sealed a guarantee facility for the issuance of
its THB2.78 billion (RM330.3 million) bond programme with Credit Guarantee
and Investment Facility (CGIF).

Proceeds from the proposed Thai bonds will be utilized for the refinancing
of IEL's debts, future expansion, working capital and other expenses for its
bio-ethanol plants.

"We are planning to stay in Thailand over the long term. In fact, we are
also looking at other areas to explore in Thailand as well," said Lee.

United Overseas Bank (Malaysia) Bhd is the principal adviser, while United
Overseas Bank (Thai) Public Company Ltd is the lead manager and bookrunner
for the proposed Thai bond.

The first tranche of the THB2.78 billion programme is expected to be issued
by the end of this year.

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Ref:
http://www.nst.com.my/news/2016/10/179273/knm-group-derive-70-cent-revenue-r
enewable-energy

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com