Bangkok--Jun 21--PTT
PTT Public Company Limited (PTT) issued Bt4.04 billion worth of unsubordinated unsecured bond with 10 years maturity. The bond carries 4.75% fixed yield with the issuance to institutional investors. Standard Chartered Bank (BKK Branch) was appointed the underwriter. At the same time, PTT’s Bt4.04 billion bond has entered into the Cross Currency Swap Transaction for US$100 million at 4.55% interest rate, resulting in a much lower financial cost.
Mr. Prasert Bunsumpun, President of PTT, revealed “PTT has been successful with its capital mobilization via bond issuance due to the investors’ confidence gained from the financial and earning strength of PTT. Fitch Ratings (Thailand) also rated this 10-year maturity bond AA+ (tha), the current highest rating given to Thai firms. In addition, PTT has also adopted Cross Currency Swap, which is a new financial instrument, at the suitable timing. Under the Cross Currency Swap transaction, PTT has converted its Bt4.04 billion proceeds into the US currency for US$100 million which results in a lower financial cost than a direct funding in overseas market. The transaction was designed to match a portion of PTT’s US$ linked revenue in order to mitigate foreign exchange risk by using natural hedge”.
Corporate Public Relations Department
PTT Public Company Limited End.