Bangkok: GC has successfully issued US$1.1 billion in subordinated perpetual bonds, the largest in South and Southeast Asia, with over eight times the subscription amount. This reinforcing investor confidence and strengthening its financial position, aligns with its debt reduction plan and prepares for sustainable future growth.
According to Thai News Agency, PTT Global Chemical Public Company Limited (GC), a global chemical leader and the flagship chemical business of PTT Group, has informed the Stock Exchange of Thailand that GC Treasury Center (GCTC), a subsidiary of GC Group, in collaboration with six leading global banks, namely Bank of America National Association, Citibank N.A. Bangkok Branch, HSBC Bank (Thailand), JPMorgan Chase Bank Bangkok Branch, Mizuho Bank Bangkok Branch, and Standard Chartered Bank (Thai) Public Company Limited, has successfully offered US$1.1 billion in subordinated perpetual bonds to overseas investors.
This issuance of US dollar-denominated subordinated perpetual bonds marks the first time for GC and PTT Group in eight years. It also marks the first company in South and Southeast Asia to offer US$1.1 billion in such bonds. The offering was overwhelmingly well-received by investors and financial institutions worldwide, with oversubscriptions exceeding eight times the offering value, reflecting the same confidence international investors have in GC’s potential and strength as domestic investors.
Meanwhile, this bond issuance reflects GC’s ongoing strategy announced earlier this year to enhance financial liquidity through deleveraging. This concrete action will enhance cost management efficiency and enhance liquidity, while laying the foundation for GC’s stable and sustainable growth, even amid global economic and petrochemical industry uncertainties.
Mr. Narongsak Jivakanan, Chief Executive Officer of GC, stated that the success of this debenture issuance not only reflects the confidence of investors worldwide, but also reflects GC’s financial strategy to strengthen its financial structure, reduce debt burden, and improve cost management efficiency. At the same time, it also increases flexibility in dealing with the uncertain global economic situation and the petrochemical industry.
Mr. Titipong Chulpronsiridee, Senior Executive Vice President of Finance and Accounting, GC, stated that GC will continue to drive forward its financial operations to support the company’s commitment to sustainable, high-value, low-carbon businesses. GC also expressed its gratitude to both domestic and international investors for their trust and positive response.
The bonds offered by GCTC are subordinated bonds with equity-like characteristics, redeemable upon the dissolution of the company. The issuer has the right to redeem before maturity and has the right to postpone interest payments without conditions. They are divided into two tranches: 1) US$600 million with a coupon rate of 6.50% per annum for the first 5 years and 3 months, and 2) US$500 million with a coupon rate of 7.125% per annum for the first 10 years, with GC guaranteeing the entire amount of the bonds.
Both debentures are rated Ba2 and BB by Moody’s and Fitch, respectively, and are listed on the Singapore Exchange. GCTC will use the proceeds from this debenture issuance to repay the debentures issued by GCTC, which are currently undergoing a tender offer, as well as for general operating purposes, including but not limited to debt repayment and lending to companies in the GC Group.