By THE NATION
Proceeds from the debenture issuance will be used to refinance bonds reaching maturity this year and to keep the company's total debt at the same level. It will, however, adjust the net debt to equity ratio (ND/E) of 1.35-1.40 times currently to 1.15 – 1.20 times.
The company will utilise the funds to strengthen its financial structure and build a strong foundation. It said the success of the offering signaled that investors have confidence in the business capabilities and outlook for one of the world's largest seafood companies. The debentures will offer an annual return of 5 per cent for the first five years.
"I would like to thank both institutional and general investors for their support, and our financial institution partners for arranging the debentures," said CEO Thiraphong Chansiri.
"These funds are important, not only in adding strength to our financial structure, but will also allow us to continue expanding our business as part of our strategy to build sustainable growth."
The debentures were rated A-/Stable by Tris Rating, while Thai Union was rated A+ with a stable outlook.
Separately, Thai Union Group also succeeded in issuing Bt6 billion worth of senior unsecured debentures to institutional investors on November 6.
The debentures were offered in two tranches - 7-year, Bt2 billion bonds with an interest rate of 2.78 per cent per annum and 10-year, Bt4 billion bonds with an annual interest rate of 3.00 per cent.
The average interest rate of the senior debentures is 2.93 per cent per annum and the average tenor is nine years. More than 20 institutional investors participated in the book building process.
The debentures received overwhelming demand and were oversubscribed by more than 3.5 times by institutional investors.