KUALA LUMPUR: Diversified process equipment manufacturer KNM Group Bhd expects to see 70 per cent of its revenue flowing from renewable energy within the five years beginning 2017.
Its renewable energy business will be mostly derived from its Thailand-based business unit, Impress Ethanol Co Ltd (IEL), of which KNM Group is a majority shareholder with a 72 per cent stake. “We have mostly been a contract player across all our business segments since our establishment in 2003,” said its group chief executive officer, Lee Swee Eng, earlier today.
“By having a source of recurring income through our renewable energy business, we will be able to achieve more stability in our income stream, rather than be impacted again and again by economic cycles,” she said. Lee also explained that IEL is expected to be fully operational in early 2017. “Thus, within five years from 2017, we are expecting to have up to 70 per cent of our income coming from our renewable energy unit in Thailand, as well as some parts of the United Kingdom,” Lee added. To that end, the group today sealed a guarantee facility for the issuance of its THB2.78 billion (RM330.3 million) bond programme with Credit Guarantee and Investment Facility (CGIF). Proceeds from the proposed Thai bonds will be utilized for the refinancing of IEL’s debts, future expansion, working capital and other expenses for its bio-ethanol plants.
“We are planning to stay in Thailand over the long term. In fact, we are also looking at other areas to explore in Thailand as well,” said Lee. United Overseas Bank (Malaysia) Bhd is the principal adviser, while United Overseas Bank (Thai) Public Company Ltd is the lead manager and bookrunner for the proposed Thai bond. The first tranche of the THB2.78 billion programme is expected to be issued by the end of this year.
