Bangkok--3 Nov--HSB
Thai Union Frozen Products Public Company Limited (TUF), the world’s largest tuna processor by volume and one of the leading shrimp processors and exporters in Thailand, has successfully completed book-building the first tranche (2-year maturity) of its most recent Thai Baht bond issue in spite of the extreme volatility of the global financial markets. This was in line with TUF’s plan to issue a dual-tranche bond (of 2-year and 5-year tenor). Both tranches are assigned credit ratings of A+ (local) with stable outlook by TRIS. This is the second bond issued by the company since its first one last year.
TUF has again selected HSBC as the Sole Lead Arranger and the Sole Bookrunner for the new bond by taking into account the bank's experience in the Thai domestic bond market and its successful arrangement of the company’s last bond issue.
Following the plan, TUF started with issuing the tranche of a shorter tenor for investors who preferred this type of maturity. The company is now in the process of issuing the 5-year tranche.
Thanks to the company and its lead manager’s efforts and determination, they managed to demonstrate to investors the solid financial position of the company as well as the durability of its business going forward through extensive communication and roadshow activities despite the extreme uncertainty of the global financial markets and investors’ concerns for an imminent global economic slowdown.
As a result, the 2-year tranche received a very positive response and demand from a wide range of institutional investors, namely mutual funds, provident funds, and insurance companies. The total sum of the tranche amounted to THB 1,500 million with a coupon rate set at 4.70%, which is equivalent to the effective yield of a 2-year Thai government bond (as of 28 October 2008) plus 121 bps. The proceeds will be used to support the company’s continual business expansion and optimize its sources of financing.
The success of this transaction demonstrates HSBC's expertise in navigating successful transactions amid the escalating global financial crisis.
Media enquiries to Varanandha Sutthapreeda on 0-2614-4609 or Savittree Muadmuang on 0-2614-4606.