Laos’s EDL-Gen plans baht bonds
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Laos-based firm intends to raise funds by issuing baht-denominated bonds for the Nam Ngum 2 hydroelectric power plant, says Finance Minister Apisak Tantivorawong.
Thailand has been a source of funding for Laos in recent years, given low interest rates, he said. The Lao government and companies have mobilised about 50 billion baht in funds from Thailand by issuing baht-denominated bonds.
Although the company is issuing baht-denominated debt and swapping it into US dollars, the total cost is still cheaper than directly borrowing from overseas, Mr Apisak said.
EDL-Generation Plc (EDL-Gen), an electricity producer in Laos, recently offered 17.5 billion baht worth of the bonds in Thailand.
Laos, dubbed the “battery of Asia”, is rich in natural resources and most of its hydropower capacity is fed into Thailand’s power grid.
Mr Apisak yesterday witnessed a memorandum of understanding between the Export-Import Bank of Thailand (Exim Thailand) and the Lao National Chamber of Commerce and Industry for trade and investment collaboration.
It is the Thai government’s policy to grow together with neighbouring countries, so Thailand stands ready to support them, Mr Apisak said during a visit to Laos to open Exim Thailand’s representative office.
Thailand’s connection with Laos is deepened by the fact that Thailand is Laos’s second-largest export destination (after China). Laos imports refined oil, automotive and farm products from Thailand.
Exim Thailand president Pisit Serewiwattana said the bank plans to open a representative office in Cambodia early next year to comply with its strategy to expand into countries where Thai commercial banks have less of a role and to support Thai investors looking to make inroads in those markets.
India, Africa and Eastern Europe are among the state-owned bank’s focus regions, Mr Pisit said.
The move to open Exim Thailand’s representative offices abroad came after Deputy Prime Minister Somkid Jatusripitak urged the bank to pursue a more aggressive business plan.