CH. Karnchang successfully issues debentures worth Baht 2 billion to institutional and high-net-worth investors
November 03, 2017
CH. Karnchang successfully launched two lots of senior unsecured debentures worth Baht 2 billion to institutional and high-net-worth investors. The debentures were underwritten by Bangkok Bank and graded A- by TRIS Rating.
Bangkok Bank Senior Vice President Corporate Finance Department Prasert Deejongkit, on behalf of the joint underwriters for CH. Karnchang PCL unsecured debentures no. 2/2017, said Bangkok Bank PCL was highly successful in selling the two lots of debentures. The issue attracted strong interest from institutional and high-net-worth investors, with demand up to four times the total issuance of the initial issue size.
The two lots of debentures worth a total of Baht 2 billion comprise: three-year debentures at Baht 1.0 billion in issue size with a 2.24 percent interest rate, and eight-year debentures at Baht 1.0 billion in issue size with a 3.34 percent interest rate. The debentures were graded "A-" by TRIS Rating on 11 October 2017. Subscriptions opened on 1-2 November 2017 and the bank issued the debentures on 3 November 2017.
CH. Karnchang Executive Director Prasert Marittanaporn said the company would like to thank all institutional and high-net-worth investors for their interest in purchasing the company's bonds. This success reflects their confidence in the company and its strong performance. At the end of June 2017, the company’s projects were worth Baht 85.800 billion. In 2016 it reported revenue of Baht 47.019 billion, with net profit of Baht 2.042 billion. Assets amounted to Baht 94.928 billion and liabilities amounted to Baht 73.074 billion. This success also reflects the company's leadership in construction and infrastructure development in Thailand and its capacity to undertake large infrastructure construction and specialized projects. The company will use the funds from the issued bonds to repay its debts and as working capital.