Advanced Info Service (AIS) is preparing to offer sustainability bonds to general investors.
The bonds will have terms of four and seven years, becoming available for subscription on Nov 8 and Nov 11-12, 2024, according to the company.
"The issuance of sustainability bonds will strengthen and support the growth of AIS's sustainable business operations under the vision of becoming a cognitive tech company, part of the sustainable nation initiative aimed at fostering Thailand's sustainable growth," said Montri Khongkruephan, chief finance officer at AIS.
"Our focus is on developing efficient digital infrastructure including the 5G network, broadband internet services, and digital platforms for enterprise customers. The bond issuance is to invest in projects related to energy efficiency and the expansion of the 5G network to enhance access to digital infrastructure for the public or households in remote areas."
AIS is confident these bonds will be well received by investors interested in one of the most stable companies in the country, he said.
The issuance is to be managed by seven financial institutions: Bangkok Bank, Kasikornbank, Krungthai Bank, Siam Commercial Bank, Bank of Ayudhya, United Overseas Bank (Thai), and Kiatnakin Phatra Securities.
Interest payments are slated for every six months throughout the bond's term. The minimum subscription for general investors is 100,000 baht, with increments of 100,000 baht.
In the first half of 2024, AIS reported revenue of 79.7 billion baht, an increase of 18% year-on-year attributed to growth in mobile services revenue, which rose by 4% from the previous year. This uptick was spurred by increased data usage and revenue related to the recovery in tourism, said the company.
Fixed broadband revenue posted robust growth of 159% year-on-year for the period.
AIS's earnings before interest, tax, depreciation and amortisation grew by 21% year-on-year. First-half net profit was 17.0 billion baht, an increase of 22% year-on-year.
Fitch Ratings sees AIS as having a strong market position in the mobile business with a 48% revenue market share, and predicts the mobile sector will benefit from further rational price competition in Thailand, supporting AIS's average revenue per user and revenue growth.
The company is filing its registration statement for the offer for sale of debt securities and draft prospectus to the Securities and Exchange Commission, which are not yet effective.