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Demand on GPSC's debentures jump to 3.6 times over subscription with 6 tranches of THB35 Billion.

GPSC has successfully offered its Senior and Unsecured Debentures in a total value of THB 35,000 million to Domestic Institutional and High Net Worth Investors. The proceeds will be used to repay a part of the bridging loans taken for the acquisition of Glow Energy Public Company Limited (GLOW). The demand to buy was 3.6 times over subscription with the order book in excess of THB 100 Billion. The company is confident to keep its D/E ratio as planned.

Mr. Chawalit Tippawanich, President and Chief Executive Officer of Global Power Synergy Public Company Limited or GPSC, the innovative power flagship of PTT Group, said "the company has successfully issued its senior unsecured debentures for domestic Institutional and High Net Worth Investors after the book building on November 1, 2019. Demand on the debentures jumped to 3.6 times over subscription comprising funds managed by asset management companies, life insurance companies, commercial banks, government-related funds, and the remaining from cooperatives and other types of investors. The exceptional participation from the investors reflects their heightened confidence in GPSC after the acquisition of GLOW which indicates that the market positively supports this strategic investment. Moreover, the result is also important in ensuring that the Company has necessary long-term financing for our strategic investment in GLOW."

GPSC's debentures are rated AA- by Thai Rating and Information Services (TRIS), reflecting the Company's position as one of the major private power producers in Thailand, highly predictable cash flow from the entry into the long-term power purchase agreement, and prudent financial policies.

The offering comprised of 6 tranches, the THB 2 billion three-year tranche was priced at 1.97%, the THB 5 billion five-year tranche at 2.24%, the THB 6 billion seven-year tranche at 2.52%, the THB 8 billion 10-year tranche at 2.86%, the THB 7.5 billion 12-year tranche at 3.15% and the THB 6.5 billion 15-year tranche priced at 3.25%.

"To ensure that investors understand our underlying credit, GPSC has been working closely with the Joint Lead Arrangers to achieve this great result with the order book in excess of THB 100 billion. The Company also issued the debentures at an appropriate time, when interest rates remained low. This allowed the Company to get optimal financing costs and manage costs efficiently." Said Mrs. Wanida Boonpiraks, Chief Financial Officer of GPSC.

Bangkok Bank Public Company Limited, Krung Thai Bank Public Company Limited, Bank of Ayudhya Public Company Limited, KASIKORNBANK Public Company Limited, Phatra Securities Public Company Limited, and Standard Chartered Bank (Thai) Public Company Limited are the Joint Lead Arrangers for this THB bond transaction.

Back08 November 2019