PTTGC Launches Issue of Subordinated Capital Bonds to Repay Baht-Denominated Debt

PTT Global Chemical Public Company Limited (PTTGC) is preparing to issue and offer subordinated bonds similar to equity, as revealed by Narongsak Jiwakanan, CEO of PTTGC. The bonds will be used to repay debts in baht and US dollars, supporting the PTTGC Group’s financial structure and strengthening the business for future growth.

This is the first time PTTGC has issued subordinated debentures similar to equity, and the first bond issue of this type in Thailand in 10 years by the PTT Group. The issuance is an important step in moving forward with sustainable growth for PTTGC, providing stable investment options for general investors.

Key Features of the Subordinated Capital Bonds

• PTTGC can exercise the right to redeem the debentures early when the debentures mature for 5 years and 6 months onwards.
• Interest will be paid every 6 months throughout the life of the debenture.
• The exact interest rate and subscription date will be published by PTTGC.
• General investors can subscribe for a minimum of 100,000 baht and multiples of 100,000 baht at a time through 12 bond underwriters.

PTTGC is confident that the subordinated capital bonds will be an attractive alternative for investors, supported by the company’s business fundamentals, financial strength, and the PTT Group’s leadership in the petrochemical and chemical industry.

PTTGC’s Credit Rating

PTTGC’s credit rating is at “AA(tha)” with a “stable” outlook, and the credit rating of the subordinated capital bonds is at “AA(tha)” A+ (tha)” level, rated by Fitch Ratings (Thailand) Company Limited. PTTGC will be the first company in Thailand to be able to count subordinated capital debentures as equity from the company’s capital for credit rating consideration with major credit rating companies.

By Phacharathorn Phumikham/Sasithorn Simaporn