Hydropower Companies to be restricted in issuing shares; Internal Return should be higher than 12%

Hydropower companies are required to implement a policy whereby the issuance of initial public offerings (IPOs) must yield an internal rate of return (IRR) of more than 12%. This measure is aimed at making the initial share offerings of hydropower companies more structured and transparent, and it has been incorporated into the registration and issuance regulations.
The agreement between the Securities Board and the representatives of electricity producers (IPPAN) includes provisions for making additional amendments to the regulations based on the findings from discussions. Apart from the requirement of a 12% internal rate of return, the hydroelectricity company has also consented to provide documented evidence of having completed a minimum of 65% of the physical infrastructure.
In addition to IPOs, the hydroelectricity company has to agree with the provisions regarding the utilization of funds raised through IPOs for repaying bank loans for ongoing projects or operational projects only. 
Furthermore, there are also some additional provisions in the issuance and disclosure guidelines for the issuance of rights shares. According to these provisions, when issuing rights shares for new projects, the company shall adhere to a net worth requirement not lower than the paid-up capital. However, this provision will only apply to companies registered with the board in the future.
For the issuance of rights shares, it is required that the company has engaged in commercial production of electricity as per the company's regulations. The provision also allows the company to raise the necessary funds for a new project in two instalments. Moreover, as per the company's regulations, after the expiration of the "lock-in" period specified in the hydropower Company Regulation, shareholders who remain in the form of promoter shareholders will be obliged to engage in the commercial production of electricity when selling shares to the public.