Today, as of 11:45 A.M. (GMT+7), the share price of Gulf Development Public Company Limited (SET: GULF) rose to THB 52.75 per share, up THB 3.00 or 6.03%, with a trading value of THB 3.16 billion, after finalizing a THB-60-billion loan deal from leading financial institutions to invest in 27 renewable energy power plant projects. The increases are also supported by expectation from the market that the company could pay a special dividend, following an abundant dividend payment received from Advanced Info Service Pcl.
Last Friday, GULF announced that it had successfully secured loan facilities totaling THB 60 billion to support the development of 27 renewable energy power projects with a total contracted generation capacity of 939 MW. These projects comprise 15 solar farms and solar farms with battery energy storage system (Solar BESS) with a total contracted capacity of 843 MW, and 12 industrial waste-to-energy power projects with a total contracted capacity of 96 MW. The financing was arranged through GULF’s subsidiaries, namely, Gulf Renewable Energy Company Limited and Gulf Waste to Energy Holdings Company Limited.
This milestone represents a significant step in advancing GULF’s greenhouse gas emissions reduction strategy and its commitment to achieving net zero emissions by 2050, while promoting the use of clean energy to support Thailand’s sustainable energy transition.
With respect to the 15 solar farms and solar BESS projects, which have a combined contracted generation capacity of 843 MW and are scheduled to commence commercial operations during 2024–2026, the total investment value exceeds THB 43,000 million, or approximately USD 1,300 million.
The financing was supported by a syndicate of leading domestic and international financial institutions, with the Asian Development Bank (ADB) serving as the Mandated Lead Arranger and Bookrunner. Other prominent lenders include the Asian Infrastructure Investment Bank (AIIB), Deutsche Investitions- und Entwicklungsgesellschaft (DEG), Development Finance Institute Canada (FinDev Canada), Export Finance Australia (EFA), the Export-Import Bank of China (CEXIM), Japan International Cooperation Agency (JICA), KEXIM Global (Singapore) (KGS), and several leading Thai commercial banks such as Bangkok Bank, Bank of Ayudhya, Export-Import Bank of Thailand, KASIKORNBANK, Krungthai Bank, and Siam Commercial Bank, alongside Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank (Thai), and DBS Bank.
Currently, 12 of these solar farms and solar BESS projects, with a total contracted capacity of 649 MW, have commenced commercial operations during 2024–2025, while the remaining three projects, with a combined contracted capacity of 194 MW, are under construction and are expected to commence commercial operations in 2026.
Furthermore, GULF continues to promote the circular economy through the development of 12 industrial waste-to-energy power projects with a total contracted generation capacity of 96 MW, which are scheduled to commence commercial operations in 2027. These projects aim to sustainably convert industrial waste into energy, reduce reliance on landfilling, and enhance the efficiency of waste management.
The projects have secured long-term financing facilities totaling approximately THB 17 billion from a group of development financial institutions, including the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB), as well as leading commercial banks such as Siam Commercial Bank, Bank of Ayudhya, TMBThanachart Bank, Sumitomo Mitsui Banking Corporation, Bangkok Branch, and Standard Chartered Bank.
Regarding GULF’s special dividend payment, which is anticipated to mirror Advanced Info Service PCL (SET: ADVANC), where GULF holds 1,202.71 million shares or 40.44% of total shares, the decision is still pending the outcome of the board of directors meeting. Nonetheless, there are differences between the cases of ADVANC and GULF.
ADVANC is currently in a strong cash-flow phase, as it is harvesting returns from its past investments, while GULF remains in an expansion phase. As a result, the two companies exhibit different characteristics. Moreover, since GULF holds a significant stake in ADVANC, it can utilize ADVANC’s dividend income to support its investment expansion.
