Kasikornbank (KBank), a Thai bank, and Thai solar power developer SPCG have teamed up to launch a THB5 billion (€129 million; $158 million) fund focusing on solar investments, KBank announced in a recent statement.
The fund will target seven solar plants currently in development by SPCG with a combined capacity of 52.22 megawatts. KBank said the plant sites were not impacted by the 2011 flooding and said the solar projects would generate 41 megawatts in commercial operations, which will be sold to the Provincial Electricity Authority of Thailand under rolling five-year contracts.
Kasikorn Asset Management, a subsidiary of KBank, will manage the fund, whereas KBank will act as financial advisor to SPCG. KBank said “the fund’s dividend to be paid to unitholders will be tax-free”.
Should the fund be successful, it could spawn follow-up vehicles, with KBank explaining that the “fund will serve as a pilot project leading to similar future fund raising platforms for other infrastructure projects led by the private sector”.
SPCG is currently developing 34 solar farms worth THB24 billion and able to generate 240 megawatts. The plants are scheduled to be completed by 2013, with the first nine already in operation.
The seven plants being targeted by the infrastructure fund are presently under construction and should be completed by the third quarter of this year.