The Securities and Exchange Commission (SEC) has given the green light to Wind Energy Holding Company Limited (WEH) to offer 2-year debentures that will mature in 2026. These debentures come with an annual interest rate of 6.75%, and the total offering is capped at 500 million baht. The subscription period is slated for July 11-12 and 15, exclusively for institutional investors and high net worth individuals. The funds raised will be channeled towards expanding the business and developing new projects both in Thailand and internationally.
Mr. Nopporn Suppipat, the Chief Executive Officer of WEH, Thailand’s leading wind power producer, announced that the SEC had approved the draft registration statement for the company’s debut debt offering on July 10, 2024. This offering, known as Wind Energy Holding Company Limited’s debentures No. 1/2024, features a fixed 2-year maturity with an annual interest rate of 6.75%. Investors will receive interest payments every three months over the term of the debenture. The subscription window is specific to July 11-12 and 15, with issuance slated for July 16, 2024.
“WEH has demonstrated exceptional performance from all 8 of our power plants, which boast a total installed capacity of 717 megawatts. This has generated revenue exceeding 10 billion baht annually and a net profit of over 5 billion baht per year for three straight years from 2021 to 2023. For 2024, we anticipate recognizing over 10 billion baht in revenue,” stated Mr. Nopporn. He further added, “Six of our wind power plants continue to benefit from an Adder of 3.5 baht per kilowatt-hour until 2027-2029, which covers the term of these debentures. Our revenue is stable and less susceptible to economic fluctuations, thanks to our long-term Power Purchase Agreements (PPAs) with the Electricity Generating Authority of Thailand (EGAT). Plus, we have never defaulted on any debt payments.”
WEH has ambitious plans to elevate its total production capacity to 1,500 megawatts within five years, up from its current 717 megawatts. This would potentially boost annual revenue to 15,000 million baht from over 10,000 million baht annually. Two ongoing projects, which integrate wind and solar power, collectively offer a capacity of approximately 120 megawatts and are gearing up to sign PPAs with EGAT. Moreover, two additional projects have passed the qualification reviews by the Energy Regulatory Commission (ERC). Beyond that, WEH is actively developing over 10 renewable energy projects, both in Thailand and abroad, ready to engage whenever new rounds of power purchase are announced by the government.
Diving into the specifics of this debenture issue, these are named, unsubordinated, unsecured debentures with a representative for the debenture holders. The total offering value is capped at 400 million baht, with an allotment for additional reserved debentures amounting to no more than 100 million baht, bringing the overall cap to 500 million baht. The primary aim of issuing these debentures is to fund business expansion, invest in new high-potential projects, and provide working capital.
Interested investors can get in touch with any of the 8 designated debenture underwriters, including Beyond Securities Public Company Limited, DAOL Securities (Thailand) Public Company Limited, Globlex Securities Company Limited, Maybank Securities (Thailand) Public Company Limited, Phillip Securities (Thailand) Public Company Limited, Pi Securities Public Company Limited, Trinity Securities Company Limited, and UOB Kay Hian Securities (Thailand) Public Company Limited. Bangkok Bank Public Company Limited will act as the debenture registrar, while DAOL Securities (Thailand) Public Company Limited will serve as the representative for debenture holders.
This is great news! Renewable energy is the future.
True, but a 6.75% interest rate seems pretty high for debentures. Anyone else concerned?
High risk, high reward. More renewables mean a healthier planet.
Exactly! Plus, WEH has a solid track record. I’m optimistic.
I’m skeptical. The renewables sector is incredibly volatile. Can WEH really guarantee these returns?
They have stable Power Purchase Agreements with EGAT. That should mitigate some risks, right?
PPAs help, but they aren’t foolproof. Economic shifts can still impact profitability.
Exactly. Long-term agreements are good, but they can be renegotiated or defaulted on.
What’s life without some risk? If they succeed, it’s a win for everyone.
Why are these debentures only for the rich? Regular people should have the opportunity to invest too.
Totally agree. It feels like another way to keep the gap between the rich and poor wide.
It’s about minimizing risk. Institutional investors are considered more capable of handling these types of investments.
But isn’t that just another form of gatekeeping?
Everyone has their lane in investing. Know yours.
WEH’s move seems strategic, but the timing feels weird. With climate change escalating, shouldn’t they expedite their projects?
Yeah! The speed at which they’re expanding doesn’t match the urgency of the situation.
Exactly! We need faster action, not slow-paced corporate timelines.
Business expansions require careful planning. Rushing could lead to failures.
6.75% interest over 2 years sounds like they are expecting some big returns. Or maybe they are covering big risks?
That interest rate definitely compensates for some underlying risks. The market is unpredictable.
This sounds like a gamble. Renewable energy is still too new to trust with substantial investments.
Renewables are the only sustainable future. Better get on board now or get left behind.
I get that, but we need to balance enthusiasm with caution.
Caution is good, but overcaution can stunt progress.
WEH’s track record is impressive, but what about emerging competitors? Can they maintain dominance?
Competition is healthy. It drives better innovations and lower prices.
True, but too much competition can dilute market shares and profits.
Can someone explain what ‘debentures’ are? I’m confused.
Sure, Larry. Debentures are like loans you give to a company. You get interest and your money back after a fixed period.
Why is everyone so focused on renewable energy investments? Aren’t there other sectors yielding better returns?
Renewables are not just about returns. They’re about sustainability and long-term benefits.
I get that, but I need to think about my portfolio’s immediate gains too.
Seems like good news for Thailand’s renewable sector, but how does this affect the average citizen?
As long as the projects translate to cleaner air and more jobs, I’m all for it.
These debentures and PPAs are a lifeline for boosting renewables in a developing region. High interest rates aside, it’s a step in the right direction.