Siam Cement PCL, Thailand’s largest industrial conglomerate, said on Thursday it had set a coupon of 5.15 per cent on a bond issue of up to THB20bn (US$566m) to refinance maturing debt.
The four-year bonds, rated "A" by Thailand’s Fitch Ratings, would open for subscription to existing bondholders and the public from March 2 to 27, the company said in a filing with the Securities and Exchange Commission.
The coupon was set at about 284 basis points over comparable government bonds.
The pricing was higher than on a bond issue last October, which the company sold THB20bn of 4-year bonds with a coupon of 5.35 percent, offering only 107 basis points over government bonds.
Like other Thai firms, Siam Cement now has to offer more attractive returns to investors who are more cautious about corporate bonds due to default risks amid the global financial crisis.
Earlier this week, Fitch Ratings downgraded the company’s national long-term rating to "A" from "A+," citing the global economic recession, which would put pressure on demand and pricing prospects for the company’s core businesses in 2009.