Jasmine Broadband Internet Infrastructure Fund (SET: JASIF or the Fund) has announced that Bangkok Bank Public Company Limited (SET: BBL), as a lender in JASIF’s THB18,160 million Facilities Agreement, agreed to amend the repayment date and terms if JASIF agrees on several conditions, including entering the agreement with Advanced Info Service Public Company Limited (SET: ADVANC) to take over the Fund.
On September 14, 2022, JASIF wrote in a statement submitted to the Stock Exchange of Thailand, saying that BBL Asset Management Company Limited (the Management Company), as the management company of the Fund is in the process of coordinating with BBL to request for the waiver of the relevant terms under the Facilities Agreement that JASIF made with BBL dated November 19, 2019, for acquiring the additional optical fibre cables, so that the Fund can proceed according to the proposals of Advanced Wireless Network Company Limited (AWN), a subsidiary of ADVANC, relating to the amendments to the benefit seeking agreements in respect of the infrastructure assets and the amendments to the Fund’s scheme, if the Fund’s extraordinary general meeting of unitholders resolves to approve AWN’s proposals.
Later, BBL informed the Management Company that the Bank approved in principle the extension of the repayment date and the reduction of the interest rate as requested by the Fund, the details of which are as follows:
| 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | Total (2023-32) |
|
| Repayment | |||||||||||
| Original terms | 1,150 | 1,300 | 1,450 | 1,550 | 1,700 | 1,900 | 2,100 | 2,200 | 13,350 | ||
| New terms | 50 | 200 | 250 | 600 | 750 | 2,000 | 2,200 | 2,200 | 2,400 | 2,700 | 13,350 |
| Interest rate | |||||||||||
| Original terms | MLR | MLR | MLR | MLR | MLR | MLR | MLR | MLR | |||
| New terms | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | MLR – 0.5% | |
In addition, the amendment will result in JASIF paying the first five installment (2023-2027) at the amount of THB 1.85 billion, compared to THB 7.15 billion in the original terms, representing a decrease by 74%.
Moreover, the current interest rate that JASIF had to pay BBL is at 5.25%, which would burden the Fund with an interest at the amount of THB 953.40 million each year. Meanwhile, the new MLR terms that indicate a reduction by 0.5% would lower that burden to THB 862.60 million each year, representing a THB 90.80 million in reduction.
However, BBL specified that the rescheduling of the repayment term and the reduction of the interest rate will become effective upon several conditions including; 1) approval of JASIF’s unitholders on the purchase of investment units currently held by Jasmine International Public Company Limited as seller and AWN as purchaser, 2) approval on the negotiation in relation to the amendments to the relevant agreements among the relevant parties, the terms of which are satisfactory to BBL such as the payment of advance rental by TTTBB in the amount of THB 3,000 million, payable THB 1,000 million for the first instalment, 3) evidence showing that the purchase of shares in Triple T Broadband Public Company Limited (TTTBB) and the investment units in JASIF by AWN is complete, and 4) evidence showing that Advanced Info Services Company Limited and AWN maintain its shareholding, whether directly or indirectly, in TTTBB of (AIS) no less than 99.87% in aggregate and have control in TTTBB.
Read JASIF’ statement and BBL’s full conditions
Following the new terms, investors are speculating that JASIF could have higher dividend yield due to lower burden in the first five years from installment and interest rate, but would require a confirmation from analysts before jumping into the investment.
