Bangkok--1 Jun--TUF
Thai Union Frozen Products Public Company Limited (TUF), one of the largest tuna processors in the world and Thailand’s leading shrimp processor and exporter, has successfully completed the bookbuilding for its inaugural Thai Baht Bond issue. The 4-year Bond has been rated at A+ (local) with stable outlook by TRIS Rating.
HSBC was the Sole Lead Arranger and Sole Bookrunner for this bond issue.
“With TUF’s strong credit story, scarcity of paper from food sector and marketing effort on series of investor meetings, the bond received overwhelming demand from wide range of institutional investors including mutual funds, provident funds, and insurance companies, despite the volatile interest rate movement during the day. The total book order was 2 times the original issue size. This enabled TUF to upsize the issue to the final size of THB 3,200 million and price inside the original price guidance.” said Stephen Williams, Co-Head of Global Capital Markets, Asia Pacific.
The coupon was set at 3.91% equivalent to 4-year Treasuries plus 54 bps as of the bookbuilding date. Proceed will be used mainly to refinance the existing loan, which offers the company interest cost saving.
This transaction demonstrates HSBC's expertise in navigating successful transactions despite Thailand’s unstable politics and economic outlook. In addition, this transaction is in line with the bank’s strategy in growing its Commercial Banking (CMB) business.
Notes to editors:
1. HSBC in Thailand
HSBC was established as the first commercial bank in Thailand in 1888. With access to global expertise and enriched local knowledge, HSBC in Thailand provides a full range of financial services including corporate and institutional banking, global markets, securities services, trade finance, payment and cash management services to corporate customers; personal financial services and credit cards to a growing retail customer base in Thailand. HSBC is globally recognised for its high service standards, ethical practices and full commitment to corporate social responsibilities to benefit the local economy.
Media enquiries to Prakob Phiencharoen +662-614-4869