Narrative
Full Description
Project narrative
In 2012, Steel Intertech Public Company Limited (SPCG Public Company Ltd.) disclosed that it had contracted one or more syndicated loans with the Industrial and Commercial Bank of China (Thai) Public Company Limited (Thai ICBC), Bank of Ayudhya Public Company Limited, and Kasikornbank Public Company Limited for the Korat 3, Korat 4 and Korat 7 Solar Power Plant Construction Project. Thai ICBC contributed 25% of the value (THB 128,000,000) of a THB 512,000,000 syndicated loan for the Korat 3 Solar Power Plant Construction Project that was issued on February 3, 2012. Thai ICBC contributed 25% of the value (THB 129,375,000) of a THB 517,500,000 syndicated loan for the Korat 4 Solar Power Plant Construction Project that was issued on February 3, 2012. Thai ICBC contributed 25% of the value (THB 121,875,000) of a THB 487,500,000 syndicated loan for the Korat 7 Solar Power Plant Construction Project that was issued on February 3, 2012. It is unclear if one loan was issued for all three sub-projects or three separate loans were issued. The borrowing terms of the loan(s) are also unknown. Solar Power (Korat 3) Co., Ltd. [KR3 or โซล่า เพาเวอร์(โคราช 3] is a solar farm project located in Sam-Muang Sub District, Srida District, Nakhon Ratchasima Province. KR3 commenced operations on 9 March 2012. Solar Power (Korat 4) Co., Ltd. [KR4 or โซล่า เพาเวอร์(โคราช 4)] is a solar farm project that is located at Tha-Arng Sub District, Choke-chai District, Nakhon Ratchasima Province. KR4 commenced operations on 14 May 2012. Solar Power (Korat 7) Co., Ltd. [KR7 or โซล่า เพาเวอร์(โคราช 7)] is a solar farm project located in Dann Nai Sub District, Dann Khun-Tod District, Nakhon Ratchasima Province. KR7 commenced operations on 30 May 2012.
Staff comments
Thai ICBC is 97.24% owned by the Industrial and Commercial Bank of China Limited. On August 4, 2011, Steel Intertech Public Company Limited (SPCG Public Company Ltd.) and Ratchaburi Electricity Generating Holding Public Company Limited signed a joint venture agreement to establish 3 project companies — Solar Power (Korat 3) Company Limited, Solar Power (Korat 4) Company Limited and Solar Power (Korat 7) Company Limited — that would be responsible for the design, financing, implementation, and management of the Korat 3 Solar Power Plant, Korat 4 Solar Power Plant, and the Korat 7 Solar Power Plant. It is unclear if ICBC extended a loan to SPCG Public Company Ltd. (for on-lending to its project companies) or to the project companies themselves. This issue merits further investigation.