Charoen Pokphand Foods Plc (CPF) is preparing to issue five series of debentures with tenors of two years to 12 years to retail, institutional and high net worth investors.
The debentures were assigned a rating of A+ by Tris Rating. The subscription period is expected to be within January 2021 through seven financial institutions: Krungthai Bank, Kasikornbank, Siam Commercial Bank, Government Savings Bank, CIMB Thai Bank, TMB Bank and Kiatnakin Phatra Securities.
Paisan Chirakitcharern, CPF's chief financial officer, said the company plans to issue and offer debentures to refinance existing debts maturing in 2021.
Proceeds from the debenture issuance will be used to refinance existing debts and for funding working capital to support future business expansion.
Retail investors can choose from four series of debentures: a five-year tenor with a coupon rate of 2.99% per year; a seven-year tenor with a coupon rate of 3.15%; a 10-year tenor with a coupon rate of 3.60%; and a 12-year tenor with a coupon rate of 3.80% per year.
The two-year tenor is offered to institutional investors and/or high net worth investors only. The final coupon rate for the two-year tenor is to be determined and announced at a later stage. The interest payment for all debentures is every six months.
For the first nine months of 2020, CFP reported 440 billion baht of sales revenue, a 12% year-on-year increase owing to a hike in swine prices in Asia. This was attributed to the swine shortage following the African swine fever outbreak.
CPF reported 19.6 billion baht in net profit for the nine-month period, up 36% from 14.4 billion last year.
CPF expects its 2021 performance to continue to be strong from previous investments in its growing China and Canada swine business, as well as expansion in Vietnam via integrated broiler production for the export market, scheduled to be commercialised next year.
The joint lead arrangers said CPF's debentures, to be offered within January 2021, will attract considerable interest from investors, particularly those looking to invest in companies that are stable with a satisfactory return.
Retail investors and high net worth investors interested in the CPF debentures can subscribe for a minimum amount of 100,000 baht and in multiples of 100,000 baht.