Article content
(Bloomberg) — Energy Absolute Pcl obtained approval to extend the maturity of 4 billion baht ($116.5 million) of green bonds, providing some relief for the Thai renewable energy company that’s under a fraud investigation. The shares surged the most in more than a decade.
Holders of the debt papers on Friday agreed to push back the maturity period by nine months to June 30, 2025, the company said in an exchange filing on Friday. Along with the extension, Energy Absolute also obtained their approval to pay 1.8% additional interest on the notes, payable every six months. The bonds originally offered 3.2% coupon.
Article content
The company, with businesses ranging from power generation to assembling trains, ferries and buses, has been facing a cash crunch after the market regulator last month accused its key officials of fraud. Its market value has sunk more than 80% this year with the local mutual fund industry banning new investments in its securities, creating a major hurdle for raising capital.
Energy Absolute has since revamped its board by appointing a new chief executive officer and a new chief financial officer as part of a broader effort to shore up investors confidence. It also signed a loan agreement for more than 8 billion baht earlier this month to ease a short-term liquidity crunch.
The company has said it’s also taking steps to bolster its financial stability by negotiating with new strategic partners, and is weighing the sale of some assets to an infrastructure fund.
The bondholders’ approval came two weeks after the company secured a similar nod to extend maturity of 1.5 billion baht of notes.
Energy Absolute’s shares jumped as much as 29% on Friday, the biggest one-day gain since 2013, and taking gains this week to 76%.
Share this article in your social network
Source link
