JWD InfoLogistics Public Company Limited (JWD) reinforces the Company’s success with the new lot of debenture offering with almost nine years’ maturity and guaranteed by CGIF with the fixed interest rate of 3.24 percent per annum and the total credit line of 1,200 million baht, following the enthusiastic response shown by institutional investors that helps to bolster the confidence in the quick subscription of the bonds. Preparations are underway to use the realized funds to expand investment in joint venture businesses, and future business expansion.
Mr. Charvanin Bunditkitsada, Chairman of the Executive Committee and CEO of JWD, ASEAN’s recognized expert in logistics and supply chain, revealed that after March 2021, the Company has been successful in issuing and offering secured debentures with a five-year maturity period worth a total of 700 million baht. These debentures were issued under the Medium Term Note (MTN) program with a total credit line of 1,900 million baht and guaranteed by Credit Guarantee and Investment Facility (CGIF).
This is the first time that the CGIF has decided to issue guarantees in the MTN program, to increase the flexibility of the bond issuers and to support the development of the capital markets in the region. Most recently, the Company has seen a good response from the issuance and offering of the remaining debentures worth a total of 1,200 million baht, which has been rated AAA by Fitch Rating (Thailand) Co., Ltd. These debentures have attracted keen attention from institutional investors who have subscribed for the full amount within a short period of time, reinforcing the confidence in the Company’s business operations and the growth potential as perceived by the investors.
These debentures carry a maturity period of almost nine years, and bear a fixed interest rate of 3.24 percent per annum. They are guaranteed by CGIF in the MTN program as with the Company’s initial bond offering. This means that the bonds carry a longer lifespan than others in the capital market.
The various criteria that led to the Company’s debentures receiving the guarantee from CGIF were its support for Thailand’s infrastructure development, the Company’s adherence to business operation under the ESG principles, the focus on the stewardship of the environment, society and good governance, and the fact that the Company has been included by the Stock Exchange of Thailand (SET) in the Thailand Sustainability Index (THIS) for four years in a row.
Most recently, The Company was honored by the Stock Exchange of Thailand with the “Sustainability Excellence: Rising Star Sustainability Awards 2021” at the SET Awards 2021 that annually honor companies that operate their businesses under sustainable development guidelines.
“The issuance of CGIF-guaranteed debentures helps to enhance the capital capability to support the business expansion, as the Company will use the proceeds realized from the offering of the new debentures totaling 1,200 million baht to cover the loans used in the expansion of the Fulfillment warehouse development project together with MyCloud Fulfillment to provide integrated storage, packing and delivery services in the joint venture with Alpha Industrial Solutions Co., Ltd. in the bid to develop real estate to support industries and to offer integrated services, carry out renovations and further develop existing warehouses, as well as for further business expansions in the future,” Mr. Charvanin said.
Mr. Adisorn V. Singhsacha, Founder and Chief Executive Officer of Twin Pine Group, a leading advisor for fundraising for companies based in CLMVT – Cambodia, Lao PDR, Myanmar, Vietnam and Thailand, in its capacity as the advisor in the issuance and offering of JWD’s guaranteed debentures, said Twin Pines Group is pleased and honored to have been entrusted to be the advisor for the issuance and offering of secured debentures of JWD on both occasions and was able to offer the bonds to investors according to the set targets.
These debentures are considered the source of funds in the form of Long Term Funding, which is most ideal for the nature of JWD’s businesses with continuous investments, and will help enhance the potential of the company’s financial position to be ready to support future investment expansion plans to drive business growth according to plan. In addition, JWD has shown that the Company can comply with the requirements in the systemization and management of the Environmental Social Management and System (ESMS) very well.
