BEM is preparing to seek approval from bondholders on September 15 to expand its Net IBD/E ceiling from 2.5 times to 3.0 times, along with an interest rate increase of 0.10% starting in 2027. The goal is to enhance financial flexibility to support large future investments, which would increase borrowing capacity by more than 20 billion baht. This covers key projects such as the Orange Line electric rail system works valued at 34 billion baht, the procurement of 21 additional Blue Line trains worth 7.2 billion baht, the Double Deck project valued at 35 billion baht, and new PPP investment opportunities such as the M9 motorway. Analysts from Asia Plus view this debt ceiling expansion as a preparation move rather than a reflection of liquidity problems, given that Net IBD/E at the end of Q2/2026 stood at 2.29 times and core business generates over 9 billion baht in EBITDA annually. Meanwhile, capital expenditure will align with cash flows unlocked from the Blue Line in 2029 and the deferral of Double Deck project payments through CK to 2030-2031. They maintain a "Buy" recommendation with a fair price of 8.20 baht.
Bangkok Expressway and Metro Public Company LimitedBEM seeks to expand debt ceiling to fund large investments, enhancing financial flexibility.
CH. Karnchang PCLCK is mentioned as deferring Double Deck project payments to 2030-2031, but impact on CK is not detailed.
Asia Plus Group Holdings PCL