TTA Successfully Achieves Bond Offering and Sales Targets Demonstrating Robust Company Strength
Bangkok, Thailand: February 6, 2024 – Thoresen Thai Agencies Public Company Limited, known as TTA, expresses satisfaction with the trust demonstrated by investors in its operational performance. TTA is delighted with the interest from potential investors considering the purchase of TTA debentures, available in two sets simultaneously, with a combined value of up to 3,500 million baht. This comes amidst the fluctuations in the bond market. The company has confidence that investors will realize a valuable return on their long-term investment.
Chalermchai Mahagitsiri, President and Chief Executive Officer of Thoresen Thai Agencies Public Company Limited (TTA), disclosed, "The company has effectively launched and presented two sets of senior unsecured bonds, designated as No. 1/2024, to both general and institutional investors, with a combined value of 2,500 million baht. Available for subscription from January 30 to 31, 2024, and February 1, 2024, the mentioned corporate bonds gained a more positive response than expected. Consequently, TTA extended the offering to include an additional 1,000 million baht in greenshoe, bringing the total value to 3,500 million baht."
“The success of TTA in this bond offering underscores investors' confidence in the company's operations, particularly amid the unpredictable conditions of the bond market. We extend our gratitude to all investors and the entire bond sale teams who consistently exhibited confidence in TTA. The funds acquired from this fundraising initiative will be allocated for investment in assets and/or business expansion. Additionally, they will serve as working capital in the group's operations, aiming to generate sustainable returns in the future.”
The first tranche of TTA's bonds, maturing in 2026, carries a 2-year term with a fixed interest rate of 4.60 percent per annum. The second tranche, due in 2027, carries a term of 3 years and 6 months, featuring a fixed interest rate of 5.20 percent per annum. With interest payments being distributed every three months, both tranches hold a bond credit rating of "BBB+" and a credit rating outlook categorized as "STABLE," as assessed by TRIS Rating Company Limited.
The funds raised from this bond issuance will play a crucial role in bolstering TTA's capacity to execute its planned sustainable business growth. Presently, TTA maintains a robust capital structure, boasting a low ratio of interest-bearing debt to equity at 0.34 times as of 30 September 2023. Moreover, the company has a clean track record with no instances of defaulting on debt payments or breaching bond conditions.