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Overview

ICBC contributes USD 5.29 million to syndicated loan for Korat 5 Solar Power Plant Construction Project

Commitments (Constant USD, 2023)$5,469,708
Commitment Year•2013Country of Activity•ThailandDirect Recipient Country of Incorporation•ThailandSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 1, 2013
End (actual)
Jan 15, 2013
Last repayment (originally scheduled)
Jan 30, 2023

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Cofinancing agencies

Private Sector

  • Kasikornbank Public Company Limited (KBank)

State-owned Banks

  • Bank of Ayudhya Public Company Limited

Receiving agencies

Private Sector

  • Steel Intertech Public Company Limited (SPCG Public Company Ltd.)

Loan description

ICBC contributes USD 5.29 million to syndicated loan for Korat 5 Solar Power Plant Construction Project in 2013

Interest type•UnknownMaturity•10 years

Narrative

Full Description

Project narrative

On February 1, 2013, Solar Power Company secured a syndicated loan from the Industrial and Commercial Bank of China (ICBC), Bank of Ayudhya (Krungsri), and Kasikornbank (KBank) for the construction of the Korat 5 Solar Power Plant. ICBC contributed USD 5.29 million of a USD 15.89 million syndicated loan. The remaining contributions were made by Bank of Ayudhya (USD 5.31 million) and Kasikornbank (USD 5.29 million). The loan has a 10-year tenor. It is unclear whether the loan was extended to Solar Power Company (for on-lending to its project companies) or to Solar Power (Korat 5) Co., Ltd. [KR5 or บริษัท โซล่า เพาเวอร์ (โคราช 5) จำกัด], a special-purpose vehicle created to manage the Korat 5 project. KR5 is wholly owned by Solar Power Co., Ltd., which is itself a subsidiary of SPCG Public Company Limited (formerly Steel Intertech Public Company Limited). The remaining borrowing terms of the loan are unknown. The Korat 5 Solar Power Plant is a solar photovoltaic facility located in Kudjock Subdistrict, Bua-Yai District, Nakhon Ratchasima Province, Thailand. According to IJGlobal, the facility has a capacity of 5.88 MW, although other sources list the capacity as 7.4 MW. The plant commenced operation on January 15, 2013, and was the tenth of 34 solar projects launched by SPCG under a long-term electricity distribution agreement with Thailand’s Provincial Electricity Authority (PEA). The facility is equipped with Kyocera solar panels and SMA inverters.

Staff comments

1. Korat 5 (KR5) is listed in SPCG’s 2012 investor presentation (GIZ slides) as Project 10 and part of a separate implementation and financing group from Korat 3, 4, and 7 (see Record ID: 64450). It was under construction in mid-2012 and achieved COD in January 2013, while Korat 3–7 were completed and operational by May 2012. Additionally, Korat 5 is 100% SPCG-owned, unlike the earlier Korat projects which were joint ventures with Ratchaburi Electricity Holding (RATCH) as a 40% equity partner. 2. Korat 5 is the 10th project in a portfolio of 34 solar farms developed across Thailand by SPCG Public Company Limited between 2010–2014. See record ID: 64450 (Korat 3, 4, 7), ID: 110220 (Khon Kaen 4), and ID: 73189 (Khon Kaen 5 and 8). 3. It is unclear if ICBC extended a loan to SPCG Public Company Ltd. (for on-lending) or to Solar Power (Korat 5) Co., Ltd. 4. Legal advisers to the transaction included Clifford Chance (for the sponsor) and Hunton & Williams (for the lenders).