SPCG, the SET-listed solar farm operator, plans to raise up to 5 billion baht from its soon-to-be-launched infrastructure fund for refinancing debts and for business expansion.
The solar farm operator will have a steady revenue stream for decades with only a few maintenance and operating costs, says Ms Wandee (left). WISIT THAMNGERN
Wandee Kunchornyakong, the chairman and chief executive, said the underlying asset of the 10-year fund is SPCG's contracts to sell electricity to the Provincial Electricity Authority.
The fund will invest in seven of its 36 solar projects.
The fund is scheduled to be launched in the second quarter, with Kasikornbank as the financial adviser.
The proceeds will be used to refinance 3 billion baht in debts after which SPCG's debt-to-equity ratio will be lower than three times. At present, the ratio is 3.4 times, but the additional investment of about 10 billion baht will bring it to four times in the third quarter.
"This will be the last year of huge investment for our remaining 18 solar farm projects. All of our 36 solar farms projects will be operational this year. From then on, we will have a steady revenue stream for decades with only a few maintenance and operating costs," said Ms Wandee.
After solar farms, she said SPCG has set its sights on retailing solar products by making solar-rooftop modules and providing assembling services.
"Since there are many solar farms in the country, demand for these products for replacement and renovation will be brisk such as in Germany and Japan, where the markets are three times our size," said Ms Wandee.
"Our business model is to sell solar products through retail channels. The investment will break even sooner than solar farms _ say, shorter than 10 years. We're also thinking about the energy management business."
This year, the company targets revenue growth of 150% from 1.21 billion baht last year, when net profit was 39.4 million.
At the end of last year, the company operated nine solar farm projects with a combined capacity of 55 megawatts.
Another 12 projects will start up in the first half.
By the end of this year, it will have a total capacity of 250 MW.
Shares of SPCG closed yesterday on the SET at 33.50 baht, down 1.50 baht, in trade worth 241 million baht.
