Prachai said it is asking state-owned Krung Thai Bank Plc to guarantee its planned debentures of around $600 million for debt refinancing. TPIPL wants creditors to waive about $120 million in accrued interest, a similar interest waiver formula that creditors have used with that of Switzerland-based Holcim, Prachai said. TPIPL and the creditor committee will meet on May 14 to discuss the matter, he added.
Local demand for TPIPL’s cement products remain strong to the extend that it rarely exports its cement products to overseas markets so far this year, said Prachai. However, the increase in the price of coal to $50 per tonne from $28 will certainly push up TPIPL’s cement production cost, Prachai said. With such a sharp increase in the price of coal, TPIPL may not be able to maintain the cement prices at the current level, given that its present long-term contract with coal sellers will expire late this year, Prachai said. TPIPL is now in talks with the Department of Internal Trade regarding the possibility of TPIPL raising prices. Total demand for cement products in the country totalled 25Mt last year and is expected to rise this year to almost 30Mt, he said.