Indorama Ventures Public Company Limited (“IVL” or the “Issuer”) , A world-class sustainable chemical company making great products for society.
, will issue the Subordinated Perpetual Debentures of Indorama Ventures Public Company Limited no. 1/2024 payable upon dissolution with the issuer's right to early redemption and unconditional interest deferral (the “Debentures”). Bullet Payment upon Dissolution of the Issuer1 or upon the Exercise of the Issuer’s Early Redemption Right on the 5th Anniversary and thereafter or other conditions pursuant to the Terms and Conditions of the Debentures2

IVL was assigned a credit rating of “AA-” outlook “Stable” and the Perpetual Debentures were assigned a credit rating of “A” outlook "Stable" by TRIS Rating Co., Ltd. (as of 30 April 2024)

Years

Interest Rates (p.a.)

1-5

6.10% (which equals to 5-Year Government Bond Yield4 + Initial Credit Spread of 3.58%)

6-25

5-Year Government Bond Yield + Initial Credit Spread + 0.25%

26-50

5-Year Government Bond Yield + Initial Credit Spread + 1.00%

51 Onwards

5-Year Government Bond Yield + Initial Credit Spread + 2.00%

Interest payable every 6 months. 

However, the Issuer has the sole right to unconditionally defer interest payment. The deferred interest will be accumulated but there will be no additional return on such cumulative deferred interest3. The interest rate shall be adjusted every 5 years based on 5-Year Government Bond Yield5 at the end of the date falling two business days preceding the commencement date of the relevant interest adjustment period.

Offering to:
General Public (A natural person who is qualified as an Institutional Investor must subscribe for the Debentures as a Retail Investor) 

The offering price per unit is 1,000 baht with a minimum subscription amount of 100,000 baht.
Subsequent multiples of 100,000 baht for Retail Investors (including Institutional Investors who are natural person)

Subscription Period: during July 1, 2024 – July 4, 2024  

Subscription Channels: Bangkok Bank Mobile Banking and Bangkok Bank Branches (except Micro Branches)   

Download draft prospectus

 

For more information, please call Bualuang Phone 1333

Example of return if the Issuer defers the payment of interest and the Issuer redeems the Debentures before maturity. 

By assuming that 5-Year Government Bond Yield to be constant at  2.52% (equal to 5-Year Government Bond Yield as of June 12, 2024) in order to calculate the interest rate. However, the internal rate of return below is an example only.

Years that Issuer exercises the call option with interest deferral and all cumulative interest

5 Years

25 Years

50 Years

100 Years

Internal Rate of Return (IRR)

5.47% p.a.

3.85% p.a.

2.98% p.a.

2.15% p.a.


Remark: The longer period of interest deferral and the larger amount of accumulated deferred interests, the lesser internal rate of return (IRR).

However, the 5-Year Government Bond Yield, which will be used for the purpose of interest rate adjustment, might change from historical data and from the above example and will be based on prevailing market conditions.

Warnings

  • The risk of subordinated perpetual debenture is higher than that of plain/common debenture.
  • An investment is subject to risks. Investors should carefully study information regarding the characteristics of product, return, and risk prior to making investment decision. 
  • For more information, investors may download the Registration Statement and Draft Prospectus available at www.sec.or.th
     

Remark

  • The allotment of the debentures to subscribers shall be at the absolute discretion of the Joint Lead Arrangers, as disclosed in the Registration Statement and Draft Prospectus.

1The Issuer will “Redeem Debentures with Bullet Payment upon Dissolution of the Issuer” which means the Debentures have no maturity date and will be redeemed upon Dissolution of the Issuer.

2Issuer’s Early Redemption Right pursuant to the Terms and Conditions of the Debentures includes (1) when the Issuer cannot deduct the interest paid to the Debenture Holders as its expenses in full for the purpose of calculating the Issuer’s corporate income tax in Thailand; or (2) when there is any change in the credit rating method or any change in the interpretation of the credit rating method for the Debentures, which results in the Issuer being able to treat the Debentures as equity credit of less than the amount on the Issue Date; or not being able to treat the Debentures as equity credit for any reason whatsoever; or (3) when there is any change in the accounting standards with which the Issuer must comply or any change in the interpretation of the accounting standards by the organization responsible for establishing the accounting standards i.e. the Federation of Accounting Professions, which results in the Issuer being able to treat the Debentures as equity less than the amount on the Issue Date, or not being able to treat the Debentures as equity for any reason whatsoever.

3If the Issuer defers the payment of interest or has outstanding deferred interest, it will be subject to the “Restriction in the Case of Interest Deferral”, i.e., the Issuer shall (1) not declare or pay any dividend and (2) not pay any interest or distribute any asset to any holder of Parity Securities or Junior Securities and (3) not redeem, reduce, cancel or buy-back or acquire any of its Securities equal or inferior to the Debentures with compensation.

4Based on 5-Year Government Bond Yield as of June 12, 2024 which is equal to 2.52%

5Investors can find the 5-Year Government Bond Yield at http://www.thaibma.or.th/EN/Market/YieldCurve/Government.aspx
 

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