Yoma Strategic Holdings Ltd, a Myanmar-based conglomerate listed on the Singapore Exchange, will raise funds for the first time in Thailand's capital market through baht-denominated debentures worth 2.3 billion baht.
Mr Kavin (left) and Mr Adisorn see mutual benefits for CLMV-based companies and the Thai capital market.
Yoma's debenture issuance will be fully guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank, established by the Asean+3 bloc to promote economic development, stability and resilience of regional financial markets.
This issuance, expected to be distributed at the end of this month to institutional investors only, will be the first CGIF-guaranteed bond by a Myanmar-based issuer.
As Yoma's financial adviser, Twin Pine Group said Yoma's debenture issuance marks the first time a leading Myanmar company will access Thailand's capital market to raise funds for business expansion.
"This exemplifies Thailand's ability and readiness in becoming the centre of fundraising for Asean-based companies," said Kavin Hetrakul, managing director of Twin Pine Group.
The debentures' coupon rate and maturity period are still being determined, Mr Kavin said.
Twin Pine Group is a financial adviser for cross-border fundraising for CLMV-based companies (from Cambodia, Laos, Myanmar or Vietnam).
Mr Kavin said Twin Pine Group's mission is to provide Thai investors with opportunities to diversify their investments through various fundraising instruments from CLMV.
Twin Pine Group is also a financial adviser for baht-denominated debentures issued by EDL-Generation Plc, an energy company listed on the Lao Securities Exchange.
The coupon rate will be separated into three investment periods: three years and six months at 3.5%; five years and six months at 5.5%; and 12 years at 6.5%. Debenture issuance is expected to be distributed by the end of this month.
Twin Pine Group previously engaged as a financial adviser for the Lao finance ministry on issuing baht-denominated bonds for Thai institutional and high-net-worth investors.
Both fundraising deals from Laos reflect Thailand's readiness to become the financial hub and fundraising centre of Asean, Mr Kavin said.
Adisorn Singhsacha, founder and chief executive of Twin Pine Group, said the company aims to bring CLMV-based companies, including state-owned enterprises, to raise funds in the Thai capital market to the tune of 15-20 billion baht a year.
For the long-term target, the company aims to raise funds of around 5% of Thailand's bond market. Outstanding value of the domestic bond market totals about 5 trillion baht.
Mr Adisorn said Thailand's capital market still has ample financial liquidity and sufficient investor demand for high-grade bonds.
"At present, Thailand's bond market is large enough for trading liquidity, while the Thai stock market also has an average daily turnover higher than that of the Singapore Exchange for more than five years," he said. "Thailand has an opportunity to become a hub for regional fundraising.
"The ability for CLMV-based companies to raise funds in the Thai capital market will allow further regional growth and development, as well as financial cooperation and partnerships. Given these countries' long-standing trade relations with Thailand, the fundraising exercises are expected to yield mutual benefits for CLMV and Thailand as trading partners."
The Finance Ministry, the Bank of Thailand and the Securities and Exchange Commission have regulations in place to facilitate qualified CLMV-based companies to raise funds in the Thai capital market, Mr Adisorn said.