UOB (Thai) completes Bt2 billion bond issuance for Siamgas and Petrochemicals PCL (SGP)
United Overseas Bank (Thai) (UOB Thai) and the Credit Guarantee and Investment Facility (CGIF) have completed the first CGIF-guaranteed Thai Baht bond issue for a Thai company in the Kingdom.
With CGIF’s partial guarantee of 85 per cent, the five-year Bt2 billion (US$64 million) bond issuance by Siamgas and Petrochemicals PCL (SGP), has a coupon rate of 3.03 per cent per year. SGP, Thailand’s second largest liquid petroleum gas (LPG) distributor, aims to raise long-term funds from institutional investors at a fixed rate through the Thai bond market.
The transaction is also SGP’s first A-rated bond issuance. UOB (Thai) was the structuring adviser and one of the joint lead underwriters for this transaction.
Tan Choon Hin, president and chief executive of UOB (Thai), said: “A strong credit rating is key to a successful bond issuance and to the issuing company attracting a wider investor base. To help SGP raise funds from institutional investors, we tapped UOB Group’s extensive regional network, deep knowledge of Asian credit and strong understanding of the company’s financing needs.”
Worawit Weeraborwornpong, chairman of the executive board and president of SGP, added: “We have had a relationship with UOB (Thai) for more than 20 years. We value the Bank’s insights, advice and bespoke financial solutions. Through its network and experienced financial advisers, UOB (Thai) has provided sound advice on our bond issuance to meet our investment needs and we trust that UOB (Thai) will continue to be a reliable banking partner to help us grow sustainably.”