Bangkok--28 Jun--Maxima Consultants
Mr. Tevin Vongvanich, the President and CEO of PTT Exploration and Production Public Company Limited or PTTEP, disclosed that PTTEP successfully launched THB 5,000 million hybrid bonds in Thailand in June 2012. The bonds have received a positive response from both institutional and retail investors reflecting their strong confidence in PTTEP's credit and future businesses. PTTEP is the first non-financial institution in Thailand to place this type of hybrid instruments in the Thai market. The hybrid bonds obtain the credit rating of “AA” by TRIS Rating Co.,Ltd.
The hybrid bonds are subordinated capital debentures with no final maturity (perpetual) and single bullet payment upon liquidation or early redemption by the Issuer. The bonds have embedded certain key equity-like features in order to obtain "equity credit" from the rating agencies. One key feature is the ability for the issuer to defer the coupon payment at its sole discretion which will enhance its financial flexibility. In case of PTTEP's hybrid bonds, the deferred coupons will be accrued and the company cannot declare or make any dividend payments while the coupons are deferred.
PTTEP is very much delighted to introduce this new investment alternative for the investors and to be part of this key milestone development of debt capital markets in Thailand. PTTEP received a strong support from three leading commercial banks -The Siam Commercial Bank, Krung Thai Bank and KASIKORNBANK - who acted as the joint lead managers for the transaction.