TPIPL to issue debentures to refinance debt

TPIPL to issue debentures to refinance debt
Published: 16 July 2015

TPI Polene Plc (TPIP), Thailand's third-largest cement-maker, says it will issue five tranches of THB17bn (US$497m) worth of unsubordinated debentures to retail and institutional investors next month, with coupon rates ranging between 4.1-5.2 per cent, the Bankok Post reports.

Chief executive Prachai Leophairatana said the first lot would be a three-year debenture carrying a coupon rate of 4.1 per cent while the second tranche for four years carries a coupon rate of 4.4 per cent.
The third tranche is a five-year debenture with a coupon rate of 4.65 per cent, the fourth is a six-year debenture with a coupon rate of 4.9 per cent and the last tranche is a seven-year debenture at 5.2 per cent, he said.

"This issuance aims to raise funds to refinance TPIPL's debt, which carries foreign exchange rate risks, cutting the company's financial costs. We want to strengthen our financial position," said Mr Prachai.

Prachai told the newspaper that some of the funds raised by the debenture issuance would be spent on the company's investment expansion, as well as to add to TPIP's cash flow.

CIMB Thai Bank has already been selected as the company underwriter, Prachai added.