Debentures to top Bt10bn in final quarter
LISTED companies plan to issue debentures worth more than Bt10 billion in the last quarter of this year.
Among companies surveyed by The Nation on their fundraising plans, Major Ceniplex Group Plc plans to issue a Bt500 million, four-year debenture with a fixed interest rate of 2.49 per cent by offers under a private placement from October 3-5.
The company will spend the debenture proceeds to pay back loans that expire before the end of this year and for business expansion into next year, the company said.
Thai Factory Development Plc plans to issue a Bt850 million debenture with an interest rate of 6.5 per cent. The term is 270 days. The issue period is from September 29 to October 4.
The company plans to use the proceeds to pay back existing debentures worth Bt850 million that expire on October 7, the company said in a filing to the Securities and Exchange Commission.
Ananda Development aims to issue a Bt2 billion, three-year debenture with an interest rate of 3.5 per cent between October 3 and 5. The company will spend the issue proceeds to pay back loans that will expire this year, and some of the proceeds will be added to its cashflow, the company said.
Areeya Property Plc aims to issue a Bt1.4 billion, with a term of three years and five months, with a fixed interest rate of 5.95 per cent. The debenture will be issued on October 9-13. The company will spend the proceeds to pay back debentures worth Bt1.39 billion that will expire on October 31, and some of the funds will be used to pay back for its bill of exchange that expires this year.
Sena Development plans to issue a Bt1 billion, two-year debenture with an interest rate of 4.25 per cent for private placement on September 26-28. The company will use the debenture proceeds to pay back loans and for business expansion this year and the next.
The Thai Bond Market Association reported that in the first half of this year, 134 firms issued long-term debenture – with terms of more than a year - worth Bt440 billion, up 39 per cent from the same period of last year.
The association expects that the second half of this year will see Thai companies to issue long-term debenture worth more than Bt200 billion. Most of them will be seeking to replace existing debentures or for debt commitments that expire this year.
