Bangkok--19 Jul--Thitikorn
TK issues 570-million-baht debenture to serve its expansion plan
- The interest of 3-year debenture is fixed 3.98%
- TK is confident the debenture will be well accepted
Thitikorn Public Company Limited, the leading motorcycle hire purchase firm in Bangkok and metropolitan, has issued 3-year debenture worth 570 million baht to serve its expansion plan as well as replace the previous debenture to be matured in the near future and the new debenture will be traded today (19 July 2013).
According to Miss Prathama Phornprapha, TK Managing Director, TK was confident that the 3-year debenture would be well accepted by the market and it was the first lot of TK this year offering 570,000 units at 1,000 baht each totaling 570 million baht at the fixed interest rate of 3.98%.
“We consider debenture as an important financial tool for us to mobilize fund from the market to support our expansion and our previous debenture is going to be matured in the near future. But the most important for issuing this debenture is managing our cost of fund to be competitive on the market,” she said.
This debenture is named-debenture, unsubordinated, and unsecured debentures without debenture holders’ representative offering to institutional investors and/or high net-worth investors persons.
Meanwhile, Mr. Prapol Phornprapha, deputy managing director, added that this debenture was the first lot of TK this year and now it was considering continuing issuing the next debenture which would depend on the needs and interest trend.
“Our debenture has been well accepted by the market because we have been trusted and we have kept our front-tier competitiveness on the market. There is no doubt about the capability to pay interest and TK is rated A- by Trist Rating,” said Mr. Prapol.
He said TK’s D/E ratio was just 1.5 times comparatively low to the industry which averaged at 8 — 9 times.
Miss Prathama added that the issuing of debenture would support TK’s expansion plan to set up 10 more nationwide branches this year which currently TK opened five branches. The expansion will push the firm’s portfolio to continue to grow by at least 10% this year from 8,647.9 million baht in last year. The growth rate of last year’s portfolio was 14.1% against the previous year.