True Corporation Plc (SET: TRUE), Thailand’s leading telecom-tech company and ranked first in the world for DJSI Sustainability Index 2023 in the telecommunication industry for the sixth consecutive year, is preparing to offer new four tranches of debentures with maturities ranging from 3 to 10 years, and with fixed interest rates between [3.15 – 4.00]% per annum. The Company and its debentures have maintained an “A+” credit rating with a “Stable” outlook from TRIS Rating, reflecting True Corporation’s strengths in both the telecommunications and digital technology sectors. Subscription periods are expected to be during February 6-7 and February 10, 2025, through seven leading financial institutions: Bangkok Bank, KASIKORNBANK, Siam Commercial Bank, CIMB Thai Bank, United Overseas Bank (Thai), Kiatnakin Phatra Securities, and Asia Plus Securities, as well as through the TrueMoney Wallet app, with Krungsri Bank serving as the registrar and representative for debenture holders.
Ms. Yupa Leewongcharoen, Chief Financial Officer (Co) of True Corporation Plc. stated that “True Corporation as Thailand’s No. 1 sustainable telecom-tech company, has demonstrated strong financial performance with a normalized net profit of THB 3.1 billion in Q3 2024 and sustained EBITDA growth for seven consecutive quarters. This success is driven by core revenue growth and cost efficiency. Our continued investment in cutting-edge AI solutions enhances customer experience and operational efficiency, aligning with our mission to advance Thailand’s digital economy through expanding 5G coverage, which now serves 12.4 million users—a 5.4% increase from the previous quarter.
True Corporation’s commitment to sustainability is further demonstrated by achieving the highest global score in the telecommunications sector on the DJSI 2023. The company’s innovative and strategic vision has helped it navigate market challenges, with its stock price surging around 120% from the start of 2024 until the end of November 2024, compared to around a 1% increase in the SET index during the same period. This reflects strong confidence from both domestic and international investors.”
The company and the upcoming debentures have been assigned a credit rating of “A+” with a “Stable” outlook by TRIS Rating Co., Ltd., as of December 13, 2024. This rating reflects the company’s strong market leadership in the mobile sectors, supported by nationwide network coverage, a comprehensive frequency spectrum, and a well-recognized brand name. Furthermore, the company is expected to continue benefiting from post-merger synergies and enhanced operational efficiency.
The debenture underwriters added, “Over the past months, the U.S. Federal Reserve (“FED”) has reduced its policy interest rate 3 times. The first reduction was in September, with a 0.50% cut, bringing the rate to 4.75–5.00%. The second reduction was in November, another 0.25% cut, bringing the policy rate to 4.50–4.75%. Then, on December 18, the FED has just announced a further 0.25% cut, as anticipated by the market, resulting in a policy rate of 4.25–4.50%. The market forecast for further rate cuts in 2025 by the FED are likely. In Thailand, the Bank of Thailand (“BOT”) similarly lowered its policy rate by 0.25% in October, bringing the rate down to 2.25%. Further reductions in the BOT’s policy rate in the upcoming year are possible. This creates a favorable opportunity for investors to invest in high-quality debentures at the beginning of the year to secure returns in advance. Given True Corporation’s ‘A+’ credit rating and ‘Stable’ outlook, these debentures are an attractive option for investors, especially those seeking high-quality investments.”
The debentures are public offerings with maturities ranging from 3 to 10 years, catering to investors across all groups, whether they are seeking short-term, medium-term, or long-term investments. The objectives of this issuance include using the funds raised to repay outstanding debts. The debentures are unsubordinated and unsecured with a debenture holders’ representative, and coupons are payable every 3 months. Subscription periods are expected to be from February 6-7 and February 10, 2025, with a minimum subscription amount of 100,000 baht and increments of 100,000 baht. The company anticipates that the debentures offered in this issuance will receive favorable feedback from investors, as they have in the past.
Details of the four tranches of debentures to be offered are as follows:
- 1st Tranche: 3-year tenor with a fixed coupon rate of [3.15 – 3.35] % per annum
- 2nd Tranche: 5-year tenor with a fixed coupon rate of [3.50 – 3.70] % per annum
- 3rd Tranche: 7-year tenor with a fixed coupon rate of [3.70 – 3.85] % per annum
- 4th Tranche: 10-year tenor with a fixed coupon rate of [3.85 – 4.00] % per annum, with a call option since the 5th year.
The company is currently in the process of filing a registration statement and draft prospectus, which are not yet effective and are pending approval by the Securities and Exchange Commission (SEC).
