EGAT To Issue Bonds Worth 7.39 Billion Baht

[Jai Dee]

EGAT will issue bonds worth 7.39 billion baht to finance new power production projects

The board of the Electricity Generating Authority of Thailand (EGAT) has approved the issue of bonds worth 7.39 billion baht for expansion of power production capacity.

Board chairman Norkhun Sitthipong (ณอคุณ สิทธิพงษ์) said EGAT needs 2.4 billion baht for construction of Songkhla power plant and expansion of power grid from the central region to the South.

The chairman said the rest of the money will be used to pay holders of EGAT bonds issued earlier which are due soon.

He said EGAT also planned to build two 900-watt generators at the Bang Pakong and Northern Bangkok power plants costing about 13 billion baht. He added that a long-term investment plan to be implemented between 2007 and 2017 is being drafted.

Source: Thai National News Bureau Public Relations Department - 24 June 2006

[chownah]

So really 2/3 of the money is for refinanceing old debt and 1/3 is for a new project. Is this a bad sign or is this just the way utilities are run?

Also, 6.5 billion baht for a 900 watt generator?...that's enough power to run one hair blower!!!

[Netfan]

Borrowing money to pay off debt. Always sound fiscal policy.

[Jai Dee]

EGAT will sell bonds worth 7.4 billion baht to raise funds for new power plants

The board of the Electricity Generating Authority of Thailand (EGAT) has approved the issue of the agency’s bonds worth 7.4 billion baht.

Energy permanent-secretary Norkhun Sitthipong (ณอคุณ สิทธิพงศ์), as chairman of the EGAT board, said the state enterprise will first sell bonds worth 3.4 billion baht altogether on August 31 and September 29. The Finance Ministry is not guarantor of the bonds for EGAT, he said.

Money from bond sales will be used for the construction of new power plants and in other investment projects, Mr. Norkhun said.

He said the EGAT board also approved the setting up of EGAT International Co to buy electricity from neighbouring countries.

Source: Thai National News Bureau Public Relations Department - 19 August 2006

[Jai Dee]

EGAT is to set up a company for investment in power production and distribution overseas

The Electricity Generating Authority of Thailand (EGAT) will set up EGAT International Co. Ltd. to invest in electricity production and distribution and other related businesses in foreign countries.

EGAT board chairman Norkhun Sitthipong (ณอคุณ สิทธิพงศ์) said the company will have a registered capital of 500 million baht. The plan to set up this company should be submitted to the Cabinet for approval in October.

Mr. Norkhun said the board also appointed 12 EGAT assistant governors under the organizational restructuring plan.

Source: Thai National News Bureau Public Relations Department - 25 August 2006