Financial close for Thai gas-fired cogeneration portfolio

Mitsui & Co., Ltd. and Gulf Energy Development Company Limited (GED) have achieved financial close for twelve gas fired cogeneration power portfolio in Thailand.

Financing for the portfolio has been provided by eight lenders:

• The Siam Commercial Bank,
• Bangkok Bank,
• KASIKORNBANK,
• Bank of Ayudhya,
• Land and Houses Bank,
• The Bank of Tokyo-Mitsubishi UFJ,
• Mizuho Bank and
• CIMB Thai Bank.

This is the largest energy portfolio financing transaction ever undertaken in Thailand.

The project invovles build, own and operate twelve gas fired cogeneration power plants with a total capacity of 1,470 MW (120 MW x 9 projects, 130 MW x 3 projects) at sites located in several industrial estates in Thailand.

The majority of electricity will be sold to the Electricity Generating Authority of Thailand under the 25-year power purchase agreements. The remaining electricity and all steam will be sold to industrial users in the nearby areas.

The first plant is expected to achieve commercial operation in May 2017 and the last project in July 2019.

Norton Rose Fulbright advised the lenders in all aspects of the financing transaction. Tassanai Kiratisountorn, senior associate in the Bangkok office of Norton Rose Fulbright, commented:

“This is the largest energy portfolio financing transaction that has ever been undertaken in Thailand. The transaction involved local and international banks. With the collaboration between our Bangkok and Singapore offices, we have been able to provide the lenders with both local expertise in Thailand’s power sector and international best practice.”