Narrative
Full Description
Project narrative
On October 4, 2013, Solar Power Company secured a syndicated loan from the Industrial and Commercial Bank of China (ICBC), Kasikornbank (KBank), and Bank of Ayudhya (Krungsri) for the construction of the Surin 1, Surin 2, and Surin 3 Solar Power Plants in Thailand. Each funding agency contributed 33.33% of the value (USD 5.27 million) of a USD 15.81 million syndicated term loan. The loan has a 10-year tenor, with maturity on October 4, 2023. It is unclear whether the loan was extended to Solar Power Company Limited (for on-lending to its project companies) or directly to the special-purpose vehicles established for each sub-project: Solar Power (Surin 1) Co., Ltd. [บริษัท โซล่า เพาเวอร์ (สุรินทร์ 1) จำกัด], Solar Power (Surin 2) Co., Ltd.[บริษัท โซล่า เพาเวอร์ (สุรินทร์ 2) จำกัด], and Solar Power (Surin 3) Co., Ltd [บริษัท โซล่า เพาเวอร์ (สุรินทร์ 3) จำกัด]. All three SPVs are subsidiaries of Solar Power Company Limited, which is itself a subsidiary of SPCG Public Company Limited (SPCG, formerly Steel Intertech Public Company Limited). The remaining borrowing terms of the loan are unknown. Surin 3, Surin 1, and Surin 2 are the 29th, 33rd, and 34th projects in SPCG’s nationwide portfolio of 36 solar farms constructed between 2010–2014. Surin 3 is located in PhonKhrok Subdistrict, Tha Tum District, Surin Province, and commenced operations on April 29, 2014. Surin 2 is located in Ban Sob Subdistrict, Samrong Thap District, Surin Province, and commenced operations on June 27, 2014. Surin 1 is located in Nong Ha Subdistrict, Samrong Thap District, Surin Province, and commenced operations on June 27, 2014. PEA ENCOM International Co., Ltd. is a shareholder in the Surin 1 and Surin 2 projects, while SPCG holds 100% equity in Surin 3. Each facility has a planned capacity of 7.46 MW (22.38 MW total).
Staff comments
1. This record covers three SPCG solar farm projects (Surin 1, Surin 2, and Surin 3). It is unclear whether they were financed under the same syndicated loan agreement or separately. It’s also unclear whether ICBC extended the loan to Solar Power Company Limited or to the individual SPVs. These issues warrant further investigation. 2. Equity ownership varies across the three projects: Surin 3 is wholly owned by Solar Power Company, while Surin 1 and Surin 2 are partly owned with PEA ENCOM International Co., Ltd, a wholly owned subsidiary of Thailand’s Provincial Electricity Authority (PEA). 3. The World Bank Private Participation in Infrastructure (PPI) document lists SPC Power Corp, a Philippines-based energy company, as the sponsor/recipient of the Surin solar projects. This doesn't match any other records however. 4. Surin 1, 2, and 3 are a part of a portfolio of solar farms developed across Thailand by SPCG Public Company Limited between 2010–2014. See record IDs: 64450 (Korat 3, 4, and 7), 73189 (Khon Kaen 5 and 8), 110169 (Korat 5), 110219 (Khon Kaen 3), and 110220 (Khon Kaen 4). 5. Legal advisers to the transaction included Clifford Chance (for the sponsor) and Hunton & Williams (for the lenders).