PTT's $1.1bn notes 10 times oversubscribed
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PTT Plc witnessed a huge success in its latest fund-raising scheme, as the US$1.1 billion (Bt33 billion) senior unsecured fixed-rate notes are 10 times oversubscribed.
The notes are partly to help recapitalise its subsidiary PTT Exploration and Production, which is raising capital to cope with overseas investment.
Pailin Chuchottaworn, CEO and president of PTT, said that due to the overwhelming interest among foreign institutional investors, the notes are issued with the historically low coupon rates offered by any bond issues from Thailand.
The notes are issued in two tranches: 10-year notes worth $500 million, offering 3.375 per cent per annum; and 30-year notes worth $600 million, offering 4.5 per cent per annum. The coupon rates are 160 basis points above US Treasuries.
To Pailin, the issue sets the benchmark curve for PTT Group of Companies and Thailand.
"The success in setting low rates is significant to the Thai public and private sectors. This demonstrates foreign investors' confidence in Thailand. The rates would serve as the benchmark for state agencies and Thai companies which want to raise foreign funds," he said.
PTT has a plan to raise Bt80 billion during 2010-2014, for refinancing and general purposes.
