Gulf Announces Bond Rates Up to 3%, Subscription Oct 19-21
Gulf Energy Development has set final interest rates for six bond tranches ranging from 1.83% to 3.00% per year, with maturities of three to ten years, and will open subscriptions from October 19 to 21. The bonds, rated AA- with a stable outlook by Tris Rating, have a total par value not exceeding 20 billion baht and will be sold through eight major banks and the Pao Tang app. Strong investor demand pushed the bookbuilding subscription to 3.3 times the allocated amount.
Gulf has set the final interest rates for six tranches of bonds and digital bonds with maturities ranging from 3 to 10 years at 1.83% to 3.00% per year, and will offer them for sale from October 19 to 21 through leading financial institutions and the Pao Tang app. Ms. Yuthapin Wangwiwat, Gulf's Chief Financial Officer, said the company announced the final rates for the six tranches, with a total par value not exceeding 20 billion baht, and subscriptions will be open from October 19 to 21 via eight leading financial institutions and the Pao Tang app. The bonds have been assigned a credit rating of AA- with a stable outlook by Tris Rating, reflecting the company's business strength and financial position.
The final interest rates for the six tranches are as follows: 1. A three-year zero-coupon bond with a discount rate of 1.83% per year. 2. A four-year bond with a fixed rate of 2.10% per year. 3. A five-year bond with a fixed rate of 2.33% per year. 4. A seven-year digital bond with a fixed rate of 2.80% per year. 5. A seven-year bond with a fixed rate of 2.80% per year. 6. A ten-year bond with a fixed rate of 3.00% per year.
Interest will be paid every six months throughout the life of the bonds, except for the three-year zero-coupon bond which makes no periodic interest payments. Subscriptions will be accepted from October 19 to 21. The filing documents and draft prospectus are already in effect; all six tranches are registered bonds, unsecured, unsubordinated, with a bondholder representative, and have a total par value not exceeding 20 billion baht.
Tris Rating assigned the AA- stable rating on August 24, 2022, indicating strong creditworthiness, solid business performance, a stable financial base, and the ability to repay the bonds.
For the bonds offered to the general public, the four-year, five-year, seven-year digital, and ten-year tranches are available. The four-year, five-year, and ten-year bonds will be sold through eight leading banks: Bangkok Bank, Krung Thai Bank, Kasikorn Bank (including Kasikorn Securities PCL as a selling agent), Siam Commercial Bank (including Innovext X Securities Co., Ltd. as a selling agent), United Overseas Bank, Krungsri Bank, CIMB Thai Bank, and Asia Plus Securities Co., Ltd. The minimum subscription is 100,000 baht in multiples of 100,000 baht. The seven-year digital bond will be sold exclusively via the Pao Tang app of Krung Thai Bank PCL, with a minimum subscription of 1,000 baht in multiples of 1,000 baht, up to a maximum of 50 million baht per transaction.
Gulf expressed delight and thanks to investors for the overwhelming response, noting that the bookbuilding process attracted demand equal to 3.3 times the amount allocated to institutional and/or high-net-worth investors. The company also said it is expanding investment channels for the public through the seven-year digital bond on the Pao Tang app.
