Investor Updates
Thailand’s EGCO buys first Australian wind farm
23 July 2013
Thailand’s Electricity Generating Public Company Ltd (EGCO) has acquired its first wind farm in Australia, where foreign investment in the nation’s sustainable energy market is gathering pace.
EGCO said it paid about 3.2 billion Thai baht (A$112.5 million) in equity for Boco Rock wind farm, which is in New South Wales, about 160 kilometres south of Canberra.
The deal was worth about A$350 million, and the remaining funds came from syndicated debt from major banks in Australia, Japan and China, according to The Wall Street Journal’s MoneyBeat.
EGCO bought Boco Rock through its full takeover of Asia Pacific Renewables Ltd, owned mainly by Continental Wind Partners, the developer of the wind farm.
The first phase of the wind farm, expected to start operating in early 2015, will have 67 turbines generating 113 megawatts (MW). It has entered into a 15-year power purchase agreement with Energy Australia Pty Ltd.
“The investment is in line with EGCO Group's strategic plan to seek new investment opportunities in Thailand and overseas,” EGCO Group President Sahust Pratuknukul said.
He said the wind farm’s solid fixed earnings would start flowing quickly because of the project’s short construction period.
“Furthermore, the project is the company’s first successful investment in Australia which will provide a strategic platform for the future growth,” Mr Sahust said in a statement.
EGCO, Thailand’s oldest power producer, plans to shift its power business in the Asia-Pacific region from fossil to renewable energy. It has allocated 16.41 billion baht (A$575 million) for investment in ongoing projects in addition to new mergers and acquisitions.
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