Bangkok--25 Mar--Thitikorn
Thitikorn Public Company Limited or TK, the country’s largest hire purchase of motorcycle, has issued a 3-year debenture worth 900 million baht to increase its long-term debt portion which will mitigate interest risk and TK is confident that the long-term Thai economy will continue to grow.
According to Mr. Prapol Phornprapha, TK Deputy Managing Director, regarding to TK Executive Board decided to issue 900,000 units, worth 1,000 baht each, matured in 2017. The issue date is set on March 26, 2014 and maturity date is March 26, 2017 at the fixed rate of 4%.
He said this debenture would increase TK’s long-term debt portion and in order to control interest cost of the company as well as to replace the company’s recent debenture which would be matured. TK has issued debenture continuously as it is considered as an efficient financial instrument to keep its competitiveness in the market.
He said it is the right time for TK to issue the debenture now because Bank of Thailand’s Monetary Policy Committee (MPC) recently cut its policy rate by 25 basis point from 2.25% to 2% with an objective to stimulate economic growth which benefited TK directly.
He added that TK is confident that Thailand’s economy would rebound when the political turmoil is over and TK now had prepared itself for the economic recovery by recruiting 200 new employees from the current of 1,900 staff members.
Moreover, TK this year had an expansion plan to open four to five new provincial branches from the current of 90 branches nationwide with an objective of expanding the current provincial customers’ ratio of 65 – 70% to 80% within the next two years, said Mr. Prapol.