Stock / BTS

Editorial team

BTS Group sets coupon range of 2.80% – 4.70% per annum for its 4 tranches of 'Sustainability-Linked Bonds (SLB)'.

SLB is to be offered to general public for the first-time in Thailand during 25 and 28-29 November 2022, BTS Group appoints5 leading financial institutions as joint lead arrangers for this offering.

BTS Group Holdings Public Company Limited or BTS Group announces coupon range for its offering of sustainability-linked bonds (SLB) under the placement of Public Offering (PO) for the first time in Thailand.
The offering consists of 4 tranches with the tenors ranging from approximately 2 years to 10 years, with coupon range between 2.80% – 4.70% per annum. Interest payment for SLB will be paid semi-annually.
The subscription period for the SLB is expected to take place during 25 and 28-29 November 2022. BTS Group appoints 5 leading financial institutions, including Bangkok Bank, Krung Thai Bank, Kasikornbank, Siam Commercial Bank, and CIMB Thai Bank, as joint lead arrangers. The SLBs were rated “A” by TRIS Rating on September 19, 2022.

The 4-tranches of the SLB consists of 1 year 11 months and 30 days with coupon range between 2.80% – 2.95% per annum, 4 years 5 months and 29 days with coupon range between 3.70% – 3.85% per annum, 7 years 5 months and 29 days with coupon range between 4.20% – 4.35% per annum, and 9 years 11 month and 30 days with coupon range between 4.55% – 4.70% per annum. Interest payment term will be on semi-annual basis. The final interest rate will be announced later.

Mr. Surayut Thaweekulwat, chief financial officer, BTS Group Holdings Public Company Limited

Mr. Surayut Thaweekulwat, chief financial officer, BTS Group Holdings Public Company Limited, the issuer of the first-ever in Thailand 'Sustainability-Linked Bonds (SLB)' to general public, said that BTS Group is confident that "Sustainability-linked Bonds" will receive warm welcome from a general public.

This is because SLB is the new paradigm of investment and that the issue of sustainability is no longer a matter of one person, but it is a responsibility of everyone. Also, the issuance represents a positive development in Thai capital market as it provides investors the opportunity to participate in ESG instrument along with the company who has long committed to this issue. Moreover, SLB provides attractive return on investment at acceptable risk level.

SLB are debentures that tie the issuer to certain conditions, depending on the achievement of the predetermined targets, i.e. Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs). Such targets are required to be ambitious and material to the issuer as well as to have a positive impact on the environment and/or society.
For BTS Group, there are 2 KPIs and SPTs that the company uses as the reference for this SLB issuance: 1) improvement in energy efficiency in green line network (which is currently the main network); BTS Group has a target to reduce electricity consumption by 8% from business-as-usual operations within 9 years or by 2031, and 2) production and/or procurement of Electricity consumption from renewable energy sources; the company has target to use electricity from renewable energy sources at least 10% each year of total electricity used in the operation of the green line network. Further details of KPIs and SPTs can be found in the registration statement and the draft prospectus (Filing).

“The issuance of BTS Group’s SLB is in line with the company's long-term climate strategy, that is to maintain carbon neutral status and to commit in increasing the use of electricity generated from renewable energy to at least 10% of total energy used for its operations.” Said Mr. Surayuth