B.Grimm Power plc has secured $28 million in a syndicated loan from Thailand’s top financers to undergird its solar energy project in Cambodia.
The financial facility is provided under the 15-year accord signed by Kasikornbank, Exim Thailand, and Bangkok Bank to fund the 39 MW solar plant in Cambodia’s Banteay Meanchey Province operated by Ray Power Supply Co., Ltd (RPS), a wholly-owned subsidiary of B. Grimm Solar Power 1 Co., Ltd.
Dr. Harald Link, Chairman and President of B.Grimm said, “The loan is a vote of confidence by top Thai financial institutions in B.Grimm at a time when fundraisings in general are significantly hampered by the effects of Covid-19.”
“RPS’s ground-mounted solar power facility is considered a success for being completed on schedule amid many restrictions, including the pandemic’s effects and severe floods in the construction area throughout 2020,” He added.
The solar power plant went online in December 2020 and began supplying electricity to state-run utility Electricite Du Cambodge (EDC)’s grid under a 20-year agreement, became the first solar energy project in Cambodia to secure a firm power supply guarantee from the government.
Kasikornbank Executive Vice-President, Tipakorn Saiphatana stated that the loan to RPS is consistent with the bank’s policy to encourage investment for sustainability and support customers’ transition to a net-zero emissions economy. The project will play a significant role in contributing to Cambodia’s economic growth with highly efficient and reliable electricity services and utilities.
Exim Thailand President, Rak Vorrakitpokatorn said the Cambodia solar project is appropriate with the bank’s drive to support the international investment of Thai ventures.
Niraman Laisatit, a senior official at Bangkok Bank, underlined that the bank has supported B.Grimm for more than 26 years in the development of various domestic and international projects, starting with the Amata B. Grimm Power 1 Co., Ltd in 1995.
The RPS project development is pursuant to changing energy demand that has led various domestic and international organizations to come up with a policy towards reducing carbon dioxide in the long term and embracing renewable energy.
Currently, B.Grimm Power commercially operates a total of 50 power plants. The company aims to boost up its total installed capacity to at least 7,200 MW of secured PPA by 2025 and further to 10,000 MW by 2030 with a targeted annual revenue of more than THB100 billion ($3 billion).