Xayaburi Power proposed the sale of Laos’s number one green power project called hydropower bond to establish sustainability credentials. The spokesman of the CK Power owning 42.5% of Xayaburi stake argued that this green format issuance is Xayaburi’s attention to sustainability. This is also coming with the support of Xayaburi low greenhouse gasses footprint as a run-of-river hydropower plant. Plus, it owns comprehensive and monitoring programs to manage the environment green bond framework.
These hydropower plant operations would not damage the environment as it does not divert, disrupt, or store water. It means that the volume of water outflow is equal to the water intake. Bankers argue that this scenario would only become the second largest including the sole run-of-river hydropower assets. India JSW Hydro Energy has purchased a $707m of 10-year non-call five senior bonds in May last year. The issuer of hydropower assets secured this.
The firm designs to get $285m from the green credential sale in tenors from three to give years. This is for Thai institutional as well as the cornerstone investors. This is because Laos does not own an active corporate bond market. Meanwhile, Thailand has closed the major state-owned offtaker of the hydropower plant which is the Electricity Generating Authority of Thailand. Meanwhile, Xayaburi operation includes a total installation activity for as much as 1.285MW. This plant has actually begun operations since 2019.
In the year of 2019, the plant was the large-scale project occupying the main Mekong River Laos. The total revenues cover Bt13.975bn in 2021, meaning it is around 15% year-on-year growth. Plus, the net increased for 290% to Bt3.78bn. This green credential would skyrocket to finance a lot of banks as well as shareholders loan.