Energy/Gulf Energy

Editorial staff

SET-listed Gulf Energy Development Plc (GULF) issued unsubordinated and unsecured debentures with a total value of 25 billion baht offered to institutional and/or high net worth investors.

The debentures have received considerable interest from institutional and high net worth investors, resulting in an oversubscription of 1.96 times, reflecting investors' confidence in the company's strength and growth potential.

 The company’s debenture issuance was allotted in series of 5 tranches; namely 1) 2.5 billion baht debenture with a 3-year tenor at an interest rate of 2.89% per annum, 2) 2.687 billion baht debenture with a 4-year tenor at an interest rate of 3.15% per annum, 3) 10.013 billion baht debenture with a 5-year tenor at an interest rate of 3.28% per annum, 4) 4.8 billion baht debenture with a 7-year tenor at an interest rate of 3.53% per annum, and 5) 5 billion baht debenture with a 10-year tenor at an interest rate of 3.76% per annum.

The average tenor for the debentures is 6.08 years, with an average interest rate of 3.37%. The company was assigned the company rating “A+” with a “stable” outlook and the debentures were assigned a rating “A” with a “stable” outlook by TRIS Rating.

The company appointed Bangkok Bank Plc, Krungthai Bank Plc, KASIKORNBANK Plc, Bank of Ayudhya Plc, Kiatnakin Phatra Securities Plc, Maybank Securities (Thailand) Plc and United Overseas Bank (Thai) as joint lead arrangers.

The subscription period for the debentures was between September 23-25, 2024, and the issue date was September 26, 2024.

"Yupapin Wangviwat"

Yupapin Wangviwat, GULF's deputy chief executive officer and chief financial officer, said: “This debenture offering has been highly successful, despite ongoing bond market volatility and amid investor concerns and caution on bond investments.

The company received overwhelming responses from investors, with oversubscription nearly doubling the offering amount, reflecting confidence in the company's strong operating performance and continuous growth.

A portion of the proceeds will be allocated to repay bonds maturing in September, while another portion will be used to repay the short-term loans from financial institutions.

“The remainder will support GULF's investment expansion both domestically and internationally, ensuring the Company's continued sustainable growth. We would like to extend our gratitude to all investors who have placed their trust in GULF's debentures and thank the 7 Joint Lead Arrangers for their contribution to this success” Ms Yupapin said