Thailand: Gunkul assigns B11bn for solar

Thailand: Gunkul assigns B11bn for solar

SET-listed Gunkul Engineering Plc has begun the process to acquire 48.98% of
a company that operates an eight-megawatt solar farm in Sa Kaeo province,
and is looking at investing in a 75MW solar farm in Japan, for a total
investment of 11.4 billion baht.

Chief executive Sopacha Dhumrongpiyawut said the company's board of
directors approved a plan to acquire shares in BMP Solar.

"After the acquisition, Gunkul will be a major shareholder and the company
plans to acquire more shares after BMP Solar runs its commercial operations
for about three years," Ms Sopacha said.

The board is also considering a plan to invest in the 75MW Godo Kaisha East
Japan Solar 13 farm in Iwakuni, Yamaguchi prefecture.

The solar farm is due to sell power to Chugoku Electric Power at a feed-in
tariff rate of ¥32 per unit for 20 years, Ms Sopacha said.

The investment in Japan will be done via Gunkul International Mauritius, a
wholly owned Gunkul subsidiary.

The funds for the investment in Japan and acquisition in Sa Kaeo will come
from domestic loans, the company's own cash and a debenture issuance, Ms
Sopacha said.

She said the investment in Iwakuni would be a major expansion into renewable
energy overseas, which is one of the company's strategies to be a leading
renewable power generating company in the region.

The project in Japan would help generate growth in profit and help
strengthen the company's financial status for more than 20 years, she said.

IV Global Plc is the financial adviser on the investment.

Separately, Gunkul's board of directors has approved a plan to issue
additional debentures worth 3 billion baht on top of the previous issuance
of 3 billion baht to raise funds for further investment.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Ref:
http://www.bangkokpost.com/business/news/1111061/gunkul-assigns-b11bn-for-so
lar

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com