CK Power's Bt4-billion debenture oversuscribed 3.9 times
CK Power has issued Bt4 billion worth of debentures as the company prepares to invest in a hydroelectric power plant in Laos.
Pre-orders soared to 3.9 times the issue size.
The company has been awarded an “outstanding” rating in performance evaluation by the Thai Institute of Directors for three consecutive years as well as being selected as one of the 2020’s Thailand Sustainability Investment Index (THSI) by the Stock Exchange of Thailand.
Thanawat Trivisvavet, managing director of CK Power Pcl (CKP), revealed that the company has recently issued debentures (non-subordinated, unsecured with bond representatives type) totalling Bt4 billion to large firms and investors. The debentures were divided into 3 sets: Bt1 billion baht debentures with a tenure of two years at interest rates of 2.31 per cent per year; Bt1.5 billion debentures with a tenure of three years at interest rates of 2.62 per cent per year; and Bt1.5 billion debentures with a tenure of seven years at interest rates of 3.76 per cent per year. These sets of debentures were assigned a credit rating of “A-/Stable” by TRIS Rating Co Ltd (“TRIS Rating”).
“The company’s debentures drew a lot of attention from investors. We have received pre-orders 3.9 times the amount initially offered. On behalf of CK Power, I would like to express my appreciation and sincere gratitude to investors for their continuous support and confidence in our debentures,” said Thanawat.
As of November 30, CKP will have raised a total of Bt10.5 billion through debentures. However, the company can raise another Bt9.5 billion to support future growth, although the company is yet to schedule the issuance of such debentures in the foreseeable future. With the issuance of these recently issued debentures included, CKP will have the net interest-bearing debt-to-equity ratio of 0.72, which is considered low.
Thanawat said that the purpose of issuing these new debentures was to pay off outstanding debentures, which are due for payment in the first half of 2021, in order to reduce the average financial cost of CKP and its subsidiaries and to prepare the company for future investment in new hydroelectric power plants in Laos.
