Governor Soonchai Kumnoonsate yesterday said Egat, with installed capacity of 15,000 megawatts, will transfer revenue and cash flow of a major power plant in Bangkok to the first infrastructure fund to be launched by a state enterprise.
The utility has appointed Siam Commercial Bank, the country's third-largest lender by assets, as financial adviser for the launch of the fund, with an initial public offering (IPO) due in next year's second or third quarter.
"We hope the highest amount to be raised will be 15-17 billion baht, but it depends on the result of the investors' roadshow," said Mr Soonchai.
Egat plans to mobilise funds for the second phase of the North Bangkok combined-cycle power plant, with a capacity of 800 MW.
From 2014-18, Egat is set to spend 400 billion baht to develop power plants and transmission systems nationwide.
Projects in the pipeline include the second unit of the Chana power plant, Wang Noi unit 4, Mae Mo units 4-7 and the Krabi power plant.
Poonsuk Tochanakarn, deputy governor for accounts and finance, said if this fund receives a warm public welcome, more funds would follow later.
With assets of more than US$16 billion, Egat is Thailand's sole power buyer and purchases electricity from private power firms and neighbouring countries.
Egat has been assigned by the government to develop hydropower plants in Laos and Myanmar to feed Thailand's power grid with a combined capacity of more than 12,000 MW, Mr Poonsuk said.
BTS Group raised $2.13 billion earlier this year via the IPO of an infrastructure fund. The success of that IPO has encouraged other firms to tap equity markets.
In 2006, Egat planned to raise up to $855 million from a share sale as part of a partial privatisation, but the sale was scrapped on the eve of its IPO after protests by a coalition of anti-privatisation groups.