Gulf issues debentures worth B35bn

Gulf issues debentures worth B35bn

The funding ensures that Gulf can smoothly proceed with its plan to expand its businesses both domestically and internationally.
The funding ensures that Gulf can smoothly proceed with its plan to expand its businesses both domestically and internationally.

Gulf Energy Development Plc has successfully issued debentures worth 35 billion baht this month.

The fully-subscribed debentures will ensure that Gulf can proceed with its plan to expand its businesses both domestically and internationally.

Yupapin Wangviwat, chief financial officer at Gulf, said that Gulf's offering of its unsubordinated and unsecured debentures was successful, and the company raised 35 billion baht as planned.

"The strategy to split the transaction into two offerings within the same month was intentional, with the aim of capturing a variety of investor types and catering to the different needs of different investor groups," she said.

"For this transaction, Gulf offered the debentures not only to its existing investor base of institutional and high-net-worth investors, but also to the general public for the first time, and the debentures were well received by all investors equally."

Among the 35 billion baht raised, 11 billion baht was placed with institutional and high-net-worth investors via book building at the end of July 2022.

The amount was split between three tranches of 3-, 5-, and 10-year tenors with an average coupon across all tranches of 3.57% per annum.

The remaining 24 billion baht was placed via public offering on Aug 15-17, with tenors of four years and seven years and coupon rates of 3.50% and 3.90% per annum, respectively.

For each tenor of the public offering portion, investors could choose, based on their own preference and convenience, between the digital version of the debentures offered through Krungthai Bank's Pao Tang application or the traditional version, which could be subscribed through nine financial institutions: Bangkok Bank, Bank of Ayudhya, Kasikornbank, Siam Commercial Bank, CIMB Thai Bank, TMBThanachart Bank, United Overseas Bank (Thai), Kiatnakin Phatra Securities and Maybank Securities (Thailand).

The final subscription for digital bonds via Pao Tang was 3 billion baht, with 21 billion baht for traditional bonds.

Gulf said the overwhelming demand was evidence of investors' confidence in the firm's strong performance and growth potential, in addition to its good credit rating for both the company and the debentures, which were rated A (stable outlook) and A-, respectively, by Tris Rating in June.

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