Bangkok--8 Apr--SCB
Siam Commercial Bank was mandated by Ratchaburi Electricity Generating Co., Ltd. (RATCHGEN), a main subsidiary of Ratchaburi Electricity Generating Holding PCL (RATCH) to be the sole underwriter and bookrunner for its B/E and AA rated senior unsecured debentures worth 16.11 billion baht. With its financial expertise and strong client base, RATCHGEN mandated SCB to arrange this bond offering which was of largest amount and highest number of series placed at one time. It was very well received and oversubscribed by institutional investors.
Siam Commercial Bank President Ms. Kannikar Chalitaporn commented that, "the Bank is very honored by the confidence placed with us by RATCHGEN to be the sole underwriter of this important transaction. This bond deal, the highest amount ever issued at one time and with the most series, marks another successful collaboration between SCB and our corporate customers. We offered a financing solution to RATCH to capture a window of opportunity in the capital market to time this bond issue, which substantially lowers the company’s financing cost. One of RATCH's key strategies for maintaining leadership as Thailand's major power generator is to effectively manage costs, including financing costs, especially in the rising interest rate environment at present. This refinancing transaction therefore helps create value for the Company. The overwhelming acceptance of this bond issue reflects strong confidence in the Company. We firmly believe that the deal will play an instrumental part in propelling the Company towards achieving its goals.
Speaking about this successful deal, RATCH’s President Mr. Noppol Milinthanggoon noted that this bond offering aims to refinance RATCHGEN’s existing loans and to reduce financing costs for the company. RATCH selected Siam Commercial Bank to structure the instrument feature and match bond series with its repayment schedule because of its extensive experience in debt capital market and strong placement capability. Thanks to strong credit rating of RATCHGEN, the offering considerably attracted investor interest and the entire issue worth 16.11 billion baht was oversubscribed. The success of the offering helps reduce our financing costs significantly, thereby enhancing the company’s potential for future investment expansion.
SCB Corporate Communications
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