Mr. Auttapol Rerkpiboon, President and Chief Executive Officer, PTT Public Company Limited (PTT) revealed that PTT successfully issued senior unsecured debentures totalling of THB 47 Billion under the Medium-Term Note Programme (MTN Programme). This new issuance was placed to Institutional and High Net Worth Investors (excluded Individual). The CEO had expressed his gratitude to all investors who always grant warm welcome to PTT's debenture issuances, including this year. With the overwhelming orderbook of over 2.73 times or more than THB 95,615.9 Billion, PTT decided to increase the issue size from initial guidance of THB 35 Billion to THB 47 Billion. The impressive orderbook reiterated investors' confidence in the resilience, solid business profile and growth trajectory of PTT Plc whereby the proceeds from this fund raising aims not only to foster economy growth and job opportunity as planned but also to be used for redemption of debentures maturing this year.
"Amid global economic uncertainties and the Covid-19 pandemic, PTT has persisted in the vision of "Powering Life with Future Energy and Beyond" and continued its THBdebenture offering process as alternative fund raising and managing funding cost efficiently. Besides, this offering provided a choice of secured investment to Institutional and/or High Net Worth Investors who keen to search for yield enhancement. Therefore, this debenture will promote and support Thailand's capital markets with local funding and simultaneously boosting the economic. Mr. Auttapol Rerkpiboon said.
Ms. Pannalin Mahawongtikul, Chief Financial Officer, PTT Public Company Limited disclosed that the debentures with 5 tranches consists of 1 year 6 month floating rate tranche with the floating rate of Compounded THOR + 0.18%, and 3 years, 5 years, 7 years and 10 years fixed rate tranches, carrying coupon rates of 0.96%, 1.31%, 1.79% and 2.37% per annum, respectively. The orderbook was filled with all types of investors ranging from Asset Management Companies, Life Insurance Companies, Government-related entities, Commercial Banks, Cooperatives, and High Net Worth investors (excluded Individual).
Special feature of this issuance is the 1 year 6 months tranche which interest rate is based on the Thai Overnight Repurchase Rate (THOR). PTT is the pilot corporate issuer who is always keen to drive forward Thailand's capital markets to the next level by offering wider range of products and innovation to serve investors' demand.
Mrs. Alisara Mahasandana, Assistant Governor of the Financial Markets Operations Group said that as the first corporate issuer who issued THOR-linked floating rate debenture, PTT is contemplating a good showcase who demonstrated the practicality of THOR rate as a reference index on corporate debenture issuance.
BOT would like to show appreciation and thank PTT together with the joint lead arrangers for your collaboration with BOT in building confidence in THOR to wider market participants and promoting the application of THOR interest reference rate, especially to debt capital market which involves variety of investor groups. On behalf of BOT, we are eagerly to see the continuously increasing in quality THOR-reference transactions in Thai financial market which would help in conquering THBFIX transition smoothly.
Bangkok Bank Plc., Bank of Ayudhya Plc., KASIKORNBANK Plc. and The Siam Commercial Bank Plc. acted as the joint lead arrangers of this transaction.