Rayong Electricity Generating Company Ltd.

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The 1232-MW gas fired combined-cycle plant at Rayong was sold to the Electricity Generating Company (EGCO), a special purpose company that held shares of divested power plants. EGCO created the Rayong Electricity Generating Co. Ltd. (REGCO) to manage the power plant in 1995. EGCO also manages three power plants in Khanom through its KEGCO subsidiary. EGCO was set up in May of 1992 as a holding company to divest some of the assets of the state-owned Electricity Generating Authority of Thailand (EGAT). In November 1994, EGCO floated 204 million shares, or 51% of the company, at 22 baht each, raising US$178.5 million and effectively making it a privately run company. The shares made their debut on the Thai stock market in January of 1995. Although EGAT retained a 48% interest in EGCO, the company was to be run as a separate entity and was to be out of the EGAT's sphere. In July of 1998, Hong Kong utility firm China Light and Power Co. Ltd. (CLP Power) acquired a 14.9% stake in EGCO for US$241 million. EGAT then owned 25% of EGCO. As of 2004, the stake holders of EGCO were EGAT (25.41%), CLP Power (22.42%), Thai investors (30.09%), and foreign investors (22.08%). To purchase the Rayong plant, EGCO needed to raise US$687 million, of which US$179.3 million was obtained through a 50% equity flotation on the Bangkok stock exchange and the remainder through loans from domestic and international banks. From the total amount floated, US$97 million was transferred to EGCO as working capital for its other power generation activities. The Electricity Generating Authority of Thailand (EGAT) retained 48% of the Rayong plant and 2% was held by the Crown Property Bureau, a holding company for the royal family. EGAT has agreed to purchase power from the Rayong plant for 20 years. The project was awarded a AA++ rating from the Thai Rating and Info Service (TRIS) due to its strong financial prospects and support from EGAT. None None