The SET-listed developer Prinsiri Plc will issue 1 billion baht worth of debentures to refinance the current tranche due for repayment.
Chairat: Low-interest boost to the market
Senior vice-president Chairat Kovitchindachai said the debentures were aimed at large investors. Proceeds will help to pay 260 million baht due next month.
The latest lot will be divided into two tranches, the first worth 500 million baht with a two-year maturity and 5.35% yield, and the other worth 500 million baht with a three-year maturity at 5.65%.
The company agrees to pay quarterly returns to unit holders.
The debentures will be ready for subscription on July 21 and 22. Asia Plus Securities and CIMB Thai Bank are the underwriters.
Tris Rating Co gives Prinsiri a BBB- for this lot.
Mr Chairat said the remaining proceeds would become cash flow for development of new and existing projects.
Prinsiri plans to launch six new projects this year worth a combined 6.51 billion baht.
They include a single-house project worth 2.4 billion baht, a duplex project worth 1.3 billion baht, three townhouse projects worth 1.65 billion baht, and a condo project worth 1.2 billion baht.
The company has maintained its pace of development in anticipation of a second-half pickup in the property market.
The military regime has broken through the political conflicts that dragged down the country for seven months since last October.
Even better, the junta has moved to wipe out economic difficulties as its first order of business.
Sped-up budget disbursement and the 92 billion baht in payments to rice farmers were quick short-term remedies that pumped liquidity into the system.
"Low interest rates are another factor boosting the housing market in the second half of the year after the slowdown," Mr Chairat said.
Shares of PRIN closed yesterday on the Stock Exchange of Thailand at 1.58 baht, down two satang, in trade worth 3.68 million baht.