Bike hire-purchase dealer to raise Bt500m via bonds

Managing director Prathama Phornprapha said that the tenure of the debenture was set at three years. The company has not finalised the coupon because it wants to see the interest-rate trend.
The three-year debentures will be issued in the second half of this year.
However, the company will launch bills of exchange (B/Es) worth Bt100 million this week.
Thitikorn currently has a financing cost of 4 per cent, of the total Bt4 billion debt; 20 per cent of the debt is short-term and 80 per cent long-term.
Praphol Phornprapha, deputy managing director, said the measure was necessary to reinforce liquidity because the company planned to expand its business into Vietnam and Indonesia.
“We want to study the rules and legislation in the two countries before starting the business. Meanwhile, we are talking to local partners to support our business expansion,” he said.
Both countries are potential markets thanks to large populations and high demand for motorcycles, he added.
He said the return to normalcy in motorcycle production would benefit hire-purchase in the second half of this year. Total motorcycle sales this year are expected to reach 2.2 million units. In the first six months, 1 million units were sold.
He said the company was confident its revenue this year would grow 10 per cent and net profit would hit a record high again after it enjoyed a net of Bt625 million last year, its best-ever performance.
The portfolio at the end of the year is expected to increase to Bt8.3 billion from Bt7.9 billion.
Thailand’s used-car market enjoyed 10-per-cent growth to about Bt330 billion in the first six months. The rebound follows last year’s floods, which caused delays in production and delivery of vehicles.
The used-car market was worth Bt550 billion last year.
Jaturont Komolmis, chairman of the organising committee of the fourth Bangkok Used Car and Imported Car Show, said preparations had been completed for about 95 per cent of the event and all exhibition space was fully occupied.
“We see great growth potential for the car industry in Asean. The average car ownership in Asean is quite low. In Vietnam, the car-ownership rate is only five cars per 1,000 persons, and only four cars per 1,000 persons in Myanmar. In Thailand, the car-ownership rate is at one car per five persons,” he said.
He added that Thailand exported vehicles and parts worth Bt527 billion last year. In the first five months of this year, the export value was Bt258 billion.
“Local automobile entrepreneurs who are able to adjust to the AEC will be at an advantage, as under the AEC, new and unexpected things will happen in the market. The increase in our capabilities will make us sustainable in the market,” Jaturont said.
Grand Prix International announced its readiness to host the fourth Bangkok Used Car & Imported Car Show that will showcase more than 10,000 high-quality pre-owned vehicles and imported automobile choices from 30 well-known dealers to correspond with any lifestyle. The show will be held at Challenger 2-3, Impact Muang Thong Thani, from July 20-29.