Dusit Thailand Plc is offering perpetual debentures for financial institutions and high-net-worth individuals between Aug 1-10 at 100,000 baht per debenture.
The hybrid perpetual debenture is a subordinated perpetual debenture. The coupon rate will be calculated as 8% for the first five years, then years six to 10 will be the five-year Thai government bond yield plus 5.9% per year.
The rate for years 11-30 is the five-year government bond plus 6.2% per year. Years 31-50 the rate is the five-year government bond plus 6.8% per year. For years 51 and beyond, the rate is the five-year government bond plus 8%.
The interest rates are adjusted every five years based on the five-year Thai government bond yield.
Amidst the impact of the global pandemic on the overall business, Dusit has an investment rating of BBB- with a negative outlook.
The hybrid perpetual debenture, however, has a BB investment rating, reflecting the steady recovery of business expected as the world reopens to international travel and tourism.
The debenture will be sold through securities companies, including Maybank Securities, KTBST Securities, AIRA Capital, Finansia Syrus Securities, and Trinity Securities.
Suphajee Suthumpun, group chief executive of Dusit Thailand, said Dusit and the global hospitality industry are both on course for a steady recovery as travel restrictions ease worldwide.
"Issuing the hybrid perpetual debentures will strengthen our position to continue our strategic vision for balance, expansion, and diversification, and we expect a strong and positive response from the investment community when the debentures are issued in August," she said.
Mrs Suphajee said the debenture's attractive interest rates are not the only lure for investors.
"With more than 70 years of experience managing luxurious properties in key destinations worldwide, Dusit has firmly established itself as one of Thailand's leading hospitality brands and a name people can trust," she said.
"While the past two years have certainly been challenging for our industry, Dusit's agile and innovative response serves as a strong indicator of how resilient our company is. From creating and rolling out hyper-targeted marketing campaigns to attract available and emerging markets to introducing new services and experiences that cater to new trends and consumer expectations, we have made every effort to enhance our competitive advantage and pave the way for sustainable success in the new normal."