Bangkok--Mar 15--KTC
The sale of 3,500 Million Baht debentures by KTC to institution investors was a grand success with oversubscribed by more than 3 times and interest rate at 4.4%. The firm is set to expand its businesses and reaffirm its place as the leader in Thai consumer finance industry.
Mr. Niwatt Chittalarn, President & Chief Executive Officer, “KTC” or Krungthai Card Public Company Limited discloses “We have made arrangements to take reservations of 3,500,000 debentures of Krungthai Card Public Company Limited with par value of 1,000 Baht each for a total of 3,500,000,000 Baht on the 16th of March 2005 from primarily institution investors and they appear to have been exceedingly well received. The demand for these debentures is three times the amount made available and the interest rate is established at 4.4.”
“The debenture shall have a period of three years and redeemable in 2008. They are rated A-Positive by TRIS Rating Co., Ltd. The credit spread is 1.1% (110 basis points) compared to three-year governmental bonds. And we are exercising full Greenshoe option worth 1,000 Million Baht available at this time for a total debenture of 3,500 Million Baht as the demand has already exceeded the number of debentures made available.”
“The success of this sale of debentures may be attributed to the confidence which investors have in us, considering the fact that we are the leader in the credit card business with over one million cards in force and that number is still rising continuously. Our operational results are positive with continued growth. Our management is efficient and our risk management system is of international standard. More importantly, we have employed efficient aggressive marketing strategies and introduced quality financial products that best respond to the requirements of the consumers. Our corporate image is a sound one and the economy is showing signs of improvement.”
“We intend to use the funds generated from the debentures on this occasion on the repayment of short-term loans and as working capital in order to support our current and future businesses. We have plans to expand our range of consumer finance services by introducing new financial products and innovative marketing campaigns as a gesture of gratitude throughout the year. It will allow us to expand our client base, better respond to the requirements of all consumer groups and better control financial costs through lower fixed interest rates”, said Mr. Niwatt in conclusion.
More information, please contact
Public and Corporate Affairs Department
Krungthai Card Public Company Limited
Kandtharat Chermchitphong Tel. 0-2665-5057
Atiga Dechawatanapisal Tel. 0-2665-5048
Fax. 0-2665-5046
E-mail : [email protected] End.