CP Foods set to launch five series of debentures to finance expansion
Charoen Pokphand Foods (CP Foods) is getting ready to issue and offer five series of debentures with tenors of two to 12 years to retail and institutional investors as well as high-net worth investors.
The debentures have been assigned an A+ by TRIS ratings and the subscription period is expected to be held throughout January. There are seven financial institutions overseeing the issue, namely
Krungthai Bank, Kasikornbank, Siam Commercial Bank, Government Savings Bank, CIMB Thai Bank, TMB Bank and Kiatnakin Phatra Securities.
Paisan Chirakitcharern, chief financial officer, said CP Foods plans to issue debentures to refinance its existing debts maturing in 2021 and for funding future business expansions.
Retail investors will be offered four series of debentures: a 5-year tenor at a coupon rate of 2.99 per cent per annum, a 7-year tenor with a coupon rate of 3.15 per cent per annum, the 10-year tenor with a coupon rate of 3.60 per cent per annum and a 12-year tenor with a coupon rate of 3.80 per year. Meanwhile, the 2-year tenor will only be offered to institutional investors and/or high-net worth investors.
The final coupon rate of the 2-year tenor debentures will be determined and announced at a later stage, with interest being paid for debentures every six months.
Retail investors and high-net worth investors interested in the debentures can subscribe for a minimum Bt100,000 in multiples of Bt100,000.
More details are available at www.sec.or.th or via the joint lead arrangers.