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BTSG's Bt5-billion Green Bonds issue oversubscribed 3.3 times


BTS Group's second Green Bond issue was oversubscribed by more than 3.3 times, the company said on Friday.

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BTSG issues Bt8.6bn in green bonds

BTS Group Holdings Pcl (BTSG) is a major player in four businesses: mass transit, media, property, and services.

The Green Bond offering targeted institutional and high net worth investors.

The total demand on the bookbuilding date was 3.3 times greater than the company’s initial target issue size, the company said.

BTSG chief financial officer Surayut Thavikulwat said the offering from November 3-5 aimed to raise Bt5 billion. Due to the oversubscription, the greenshoe option was exercised, which allows the underwriter to increase the size of the issue. The additional Bt3.6 billion greenshoe option boosted the total issue size to Bt8.6 billion. They comprise Bt500 million two-year series with a fixed interest rate of 2.10 per cent per annum, Bt4 billion three-year series with a fixed interest rate of 2.44 per cent per annum, Bt1.5 billion five-year series with a fixed interest rate of 2.86 per cent per annum, Bt2 billion seven-year series with a fixed interest rate of 3.11 per cent per annum and Bt600 million 10-year series with a fixed interest rate of 3.41 per cent per annum.

TRIS Rating assigned “A” to the Green Bond on September 29. The Green Bond’s proceeds will be used for investment and debt repayment of the two monorail mass transit projects -- the Pink Line Khae Rai-Min Buri section, and the Yellow Line Lad Prao-Sam Rong section. Both are the anchored projects that will elevate Bangkok’s electric mass transit network to lessen the use of fossil-fuel vehicles, resulting in the reduction of carbon emission and fine dust particles in the Bangkok metropolitan area.

The Pink Line Khae Rai-Min Buri section and the Yellow Line Lad Prao-Sam Rong section are under construction. Overall construction progress of both lines are more than 60 per cent complete and expect to commence full operation in 2022.

“BTSG would like to thank investors for their trust and interest in subscribing to the BTSG Green Bond and we would also like to thank Bangkok Bank, Siam Commercial Bank, and Krungthai Bank as the lead arrangers for their support and contribution to this achievement. This Green Bond is the second series of Green Bonds issued by BTSG following the success of its first Green Bond in 2019.

"The consecutive Green Bond issuance shows our commitment towards continuous investments in green projects and sustainable business growth,” said Surayut.

BTSG Green Bond complies with International Green Bond Standards, including the Green Bond Principles 2018 issued by the International Capital Market Association as well as the Asean Green Bond Standards 2018 issued by the Asean Capital Markets Forum, Surayut said.

Published : November 06, 2020

By : The Nation