Ananda Development closes bond register ahead of bondholder meeting

Ananda Development Public Company Limited (ANAN) has announced the closure of the register book for 5 series of bonds worth over 11 billion baht but has not specified the reasons for doing so. 

The company will close the register on June 13, 2024, and hold a bondholder meeting on June 27. 
The Thai Bond Market Association (ThaiBMA) has marked the bonds with an RI (Request Information) symbol to notify investors that they are awaiting information from the company on the closure of the bond register for the purpose of organizing a bondholder meeting.

However, the company confirmed that "the company has already prepared the funds for principal repayment to the bondholders" and clarified that the RI marking was due to the company notifying the closure of the register book to compile the list of bondholders as per regulations.  

Prasert Taedullayasatit, CEO of the Real Estate Business Division at Ananda, revealed that the company has prepared over 4 billion baht to repay the principal of the ANAN247A bonds, which have an outstanding amount of 3.2312 billion baht and are due for repayment on July 14. He confirmed that the company is not experiencing liquidity problems.

“I don't want to say much more. Once the payment is made, it's done. There are only a few days left.”
The next bond series, ANAN251A, with an outstanding amount of 1.8117 billion baht, is due for repayment on January 15, 2025. It is believed that there will not be any problems with that either, with more than six months available for preparation.

Currently, the company has an inventory worth over 40 billion baht. This inventory can be used to back up the remaining bond repayments, covering the total outstanding amount of 11.318 billion baht for all five bond series.

In the first quarter, the company achieved sales of 5.2 billion baht, with transfers amounting to 3.344 billion baht and a return to profitability with a profit of 199 million baht for the first time in three years after the Covid-19 pandemic. With an inventory of 40 billion baht ready for the next 2-3 years of bond repayments, there is no need to worry about Ananda not having the funds to repay maturing bonds. Prasert explained

Despite the company's positive direction in repaying bonds on schedule, investor concerns have arisen regarding ANAN's ability to repay the over 3 billion baht due in July, which has led to a significant drop in ANAN's share price. Clarity on this matter is awaited to allow investors to evaluate the impact on the company.

The investment recommendation for ANAN has been "not recommended" since the beginning of the year, reflecting the debt repayment risks and challenging real estate market conditions.

Ananda, a prominent developer led by CEO Chanond Ruangkritya, which is known for its condominiums along the BTS line, continues to face numerous challenges. The Supreme Administrative Court has ordered the revocation of the construction permit for the luxury Ashton Asoke condominium, and a clear solution to this issue has yet to be established.

During the Covid-19 crisis, the company faced continuous losses, similar to other businesses. In 2020, Ananda had a total revenue of 4.886 billion baht and a net loss of 206.58 million baht, with no new project launches. In 2021, the company planned to launch five new projects worth 24.422 billion baht but did not launch any, resulting in a total revenue of 4.177 billion baht and a net loss of 457.34 million baht. In 2022, they planned to launch seven projects worth 28 billion baht but only launched six, leading to a total revenue of 4.039 billion baht and a net loss of 295.78 million baht. In 2023, they planned to launch two projects worth 14.6 billion baht but again did not launch any, with a total revenue of 3.819 billion baht and a net loss of 887 million baht.