Page 326 - BTSGroup ONE REPORT 2021/22_EN

324 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l
BTS Rail Mass Transit Growth Infrastructure Fund will be responsible
for the bank guarantees amounting to Baht 38 million (2021: Baht
38 million) issued by a bank on behalf of the Company to guarantee
electricity use.
b) The Company received an approval of credit facility of letter of
guarantee from a commercial bank amounting to Baht 1,575 million
(2021: Baht 1,575 million). The Company used the credit facility to
issue letter of guarantee for the associate (U-Tapao International
Aviation Company Limited) to guarantee compliance with the contract
for the U-Tapao International Airport and Eastern Aviation City
Development Project amounting to Baht 1,575 million (2021: Baht
1,575 million). In addition, the Company provided the guarantee to
Eastern Economic Corridor Office for the Project in proportion to its
investment not exceeding Baht 10,306 million (2021: Baht 10,306
million) for the damages exceeding the amount of the letter of
guarantee above.
c) The two subsidiaries had outstanding bank guarantees that were
issued by a commercial bank on behalf of the subsidiaries, amounting
to Baht 5,250 million (2021: Baht 5,250 million) to guarantee
compliance with the concession contracts for the MRT Pink and
Yellow Line Projects. For the outstanding bank guarantees amounting
to Baht 5,000 million, the Company provided guarantees in proportion
to its shareholdings in the subsidiaries and for the outstanding bank
guarantees amounting to Baht 250 million, the Company provided
guarantees in full amount.
The Company entered into the Sponsor Support Agreement with
two subsidiaries. The Company agreed to provide financial support
in the form of shareholders’ loans or the provision of shareholders
guarantee in proportion of investment.
d) Two joint venture companies had outstanding bank guarantees that
were issued by two commercial banks on behalf of the joint venture
companies, amounting to Baht 3,100 million for guarantee proposals
for compliance with joint investment agreement with Department of
Highways in the operation and maintenance of Bang Pa-In - Nakhon
Ratchasima (M6) Intercity motorway project amounting to Baht 1,700
and in the operation and maintenance of the Bang Yai - Kanchanaburi
(M81) Intercity motorway project Baht amounting to 1,400 million.
The Company provide the guarantee to two commercial banks in
proportion to its investment.
e) BSR Joint Venture had an outstanding letter of guarantee of Baht
2,000 million (2021: Baht 3,333 million) issued by a bank in its name
as a performance bond for a bid proposal for the Orange Line Project
(Bang Khun Non - Min Buri (Suwinthawong)). The Company and
BTSC provided guarantees of this letter of guarantee in proportion
to its investment amounting to Baht 760 million and Baht 840 million,
respectively (2021: Baht 760 million and Baht 840 million, respectively).
f) The Company provided a guarantee on BTSC’s compliance to BTS
Rail Mass Transit Growth Infrastructure Fund as described in Sponsor
Support and Guarantee Agreement.
49.6 Other Commitments
a) To prevent conflicts of interest in the property development business
between the Company and U City Public Company Limited (“U City”),
the Company agrees to grant U City the three rights under the terms
and conditions as stipulated in the agreement i.e. (1) right of first
refusal to purchase or to take on lease of land and/or buildings used
in the property business of the Group and to purchase shares in
the subsidiaries holding land and/or buildings used in the property
business, at the price not less favorable than those offered to the
third party (2) call option to purchase or to take on lease of land and/
or buildings and right to purchase shares in any subsidiary holding
land and/or buildings at a fair value, and (3) right to be appointed