Bangkok: PTT Global Chemical Public Company Limited (GC), the flagship chemical business of the PTT Group, has announced its preparations to issue and offer a new series of baht-denominated subordinated bonds featuring equity-like characteristics. These bonds are expected to be available to general investors through a public offering in late 2025, with a minimum subscription value of 100,000 baht and increments of 100,000 baht facilitated by 12 bond underwriters.
According to Thai News Agency, Mr. Titipong Chulpronsiridee, Senior Executive Vice President of Finance and Accounting at GC, stated that the issuance of these subordinated equity-like debentures is part of the company’s ongoing deleveraging program, scheduled to run from 2024 to 2025. The program aims to fortify the company’s long-term capital structure, enhance financial flexibility, and address challenges posed by the global economic climate and geopolitical factors. This initiative seeks to steer GC towards sustainable growth as a high-value, low-carbon business.
“This initiative is a component of GC’s ongoing financial burden reduction plan, following the favorable reception of the 2024 subordinated equity-like debentures, which were valued at up to 17 billion baht, reflecting investor confidence. GC remains committed to financial discipline and adheres to a systematic capital management roadmap, aligning with the Portfolio Transformation strategy to prepare the company for stable and sustainable growth into a high-value, low-carbon business,” Mr. Titipong added.
In 2025, GC will continue its financial burden reduction plan, which includes issuing US dollar-denominated subordinated equity-like debentures, implementing asset monetization to enhance asset management efficiency, and driving holistic optimization to improve operational efficiency. This includes preparing to issue a new series of Thai baht-denominated subordinated equity-like debentures.
GC also remains focused on enhancing its competitiveness through innovation and digital technology, following its growth strategy towards high-value, low-carbon businesses. This includes both the specialty chemicals business, driven by allnex, a global leader in industrial coating resins, and the bio-business through NatureWorks, which is currently constructing the world’s second bioplastic resin production plant in Nakhon Sawan Province. GC is also advancing its sustainability efforts towards achieving Net Zero by 2050.
Subordinated debentures are similar to equity, as accounting-wise, they can be invested as 100% equity throughout the debenture’s life. In terms of credit rating, 50% can be considered equity credit. GC plans to launch a public offering in late 2025 for general investors with a minimum subscription value of 100,000 baht and increments of 100,000 baht.
The underwriter of this debenture offering identified GC’s subordinated equity debentures as an attractive option. Based on the rating by Fitch Ratings (Thailand) Co., Ltd. on April 8, 2025, GC had a credit rating of AA- (tha) with a “stable” outlook. On July 7, 2025, the subordinated equity debentures were rated A (tha), one of the highest credit ratings in the Thai debt market. Considering the company’s AA- credit rating for principal and interest repayment capability, the subordinated equity debentures are two notches lower than the company’s credit rating due to their repayment structure, which is subordinated to conventional debentures.
GC is currently in the process of submitting a prospectus and information sheet to the Securities and Exchange Commission (SEC), which are not yet effective. Interested parties can subscribe or inquire for more information through any of the 12 debenture underwriters: Bangkok Bank, CIMB Thai Bank, Kasikornbank, Krungthai Bank, Siam Commercial Bank, Kiatnakin Phatra Securities, Asia Plus Securities, Bank of Ayudhya, Krungthai XSpring Securities, Maybank Kim Eng Securities (Thailand), Thanachart Bank, and Yuanta Securities (Thailand). The exact interest rates and offering period will be announced later.