“In 2011, EDL-Gen was among the first two companies listed on Lao Securities Exchange (LSX), paving the way for a remarkable business growth in support of energy security and sustainability for Laos and ASEAN region.”
Based in Vientiane Capital, EDL-Generation Public Company (EDL-Gen) is the leading power generation business in Lao People’s Democratic Republic (Lao PDR) with the vision to strongly contribute to national socio-economic development, and energy security and sustainability of Lao PDR and ASEAN region. It was incorporated in December 2010 and completed its Initial Public Offering (IPO) and listed on Lao Securities Exchange in January 2011. It operates as a subsidiary of Electricite Du Laos (EDL), the premier state-owned power utility with nationwide power transmission and distribution networks, and grid-to-grid connection with neighbouring countries for power export and exchange.
EDL-Gen engages in the generation and wholesale of electricity to EDL to be sold domestically and internationally, with an eye for export more in the future. EDL-Gen also invests in shares of electricity generation projects, either by replacing EDL as a shareholder or by starting new joint ventures. In addition, EDL-Gen provides operation and maintenance (O&M) services to other hydropower plants and is implementing its strategic O&M business expansion through a recent establishment of EDL-Gen Operation and Maintenance Services Sole Co., Ltd as its subsidiary and through business partnerships and cooperation with other leading power companies in the region.
The story of EDL-Gen is characterized by remarkable business growth. Through consistent efforts in seeking out and seizing new investment opportunities, EDL-Gen is on track in implementing its long-term strategic plan in order to become a leading power company in providing electricity at reasonable price to Lao PDR and other ASEAN nations.
Beginning with 387 megawatts (MW) of installed capacity in 2010, EDL-Gen has almost tripled its power generation capacity within eight years. As of June 2018, the company operates 10 hydropower plants and owns stakes in 8 Independent Power Producers, including the first solar power plant in Lao PDR in 2017, with a combined installed capacity of 1,154.6 MW. Therefore, the company has been able to increase revenue, maintain satisfactory profitability, and increase long term enterprise value for the benefits of its shareholders. In addition, the company’s growth helps Lao PDR further strengthen its position as a net exporter of power in the Mekong Region.
This growth achievement is made possible by utilizing both local and regional capital markets as a source for long-term financing to support its investments according to its long-term strategic expansion plan. Apart from equity issuances via rights offering and public offering in 2012 (USD 200 million) and 2015 (USD 340 million), a notable milestone was when EDL-Gen became the first corporate in CLMV countries (comprising of Cambodia, Lao PDR, Myanmar and Vietnam) to successfully issue THB-denominated corporate bonds in Thailand in 2014 (equivalent of USD 197 million). This paves the way for more and larger bond issuances in Thailand by EDL-Gen in 2016 (USD 312 million) and 2018 (equivalent of USD 409 million). EDL-Gen’s access to substantial financial capital has been enabled by its credit rating assigned by TRIS Rating Co., Ltd from Thailand at BBB+ that the company has maintained since 2014.
EDL-Gen’s substantial growth is also managed and supported by the ways in which it operates its business as reflected in its mission statements. The foundation starts from continued efforts to integrate good corporate governance principles into its business practices, to improving its water management and operating efficiency, enhancing the capacity of its human resources, and the commitment to corporate social responsibilities (CSR) and the environment.
In particular, EDL-Gen’s extensive CSR initiatives focus on conserving the natural resources, social contributions, and improvement of local livelihoods. For instance, annually EDL-Gen provides financial support to the conservation of National Protected Areas, as well as organising annual trees planting and fish release activities to observe the National Arbour Day. The company also commits to a wide range of initiatives aiming at improving livelihoods of local communities surrounding its power plants, including provision of clean water supplies, power grid connection, and improvement of local healthcare facilities, schools and road access. EDL-Gen’s social contribution also extends to cover wider youth development programmes, tertiary education, culture preservation and disaster relief. More recent examples from 2017 include the provision of Programmable Logic Controllers to the Faculty of Engineering, National University of Laos to support structural and functional research and students’ operational capability; and a drawing contest organised in collaboration with the National Institute of Fine Arts under the theme “Sustainable Power for the Nation” from which the drawings become part of EDL-Gen’s ongoing publicity campaigns to promote awareness on socially responsible and environmentally sustainable business practices.
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