TPI Polene Plc, the country's third-largest cement-maker, says it will issue two tranches of 6 billion baht worth of debentures.
An aerial view of cement plants in Saraburi province, a major production hub for Thailand's cement industry, which is expected to be upbeat this year in line with growing real estate and infrastructure markets. PATTANAPONG HIRUNARD
Chief executive Prachai Leophairatana said the first tranche would be a four-year debenture carrying a coupon rate of 4.85% while the second tranche for five years carries a coupon rate of 5.20%.
Both tranches of debentures are senior unsecured debts and the debts will be ready for subscription on Jan 19-21, with CIMB Thai Bank selected as the company underwriter.
"The proceeds from these debentures will be used to fund the company's operations and support investment projects that are being implemented and planned for the future. They will also be used for early financing for debts with high funding costs," said Mr Prachai.
TRIS Rating assigned a rating of BBB+ to TPIPL's debenture.
"The debt market is in the spotlight with many investors as several firms have now switched to raising funds in the debt market because the global economy has not yet fully recovered," said Subhuk Siwaraksa, chief executive of CIMB Thai.
"Moreover, there are signs that several countries could face deflation, encouraging central banks to continue their monetary easing policies in order to inject more money into the economy. That would help open the gate to allow more foreign money to pour into emerging debt markets, including Thailand.
"That's why we think that many investors could be interested in our debenture because the issue would offer them an appropriate return along with acceptable risk."