True Corporation Plc. (SET: TRUE) , Thailand’s leading telecom-tech company and the global leader in sustainability with the highest DJSI 2023 score in the telecommunications sector for the sixth consecutive year, announced new debenture offerings in five tranches with maturities ranging from 2 to 10 years with fixed coupon between 2.95% and 4.00% per annum. The debentures hold an “A+” credit rating with a “Stable” outlook from Tris Rating, reaffirming TRUE’s robust position in both telecommunications and digital technology businesses. The expected subscription period is November 21-22 and 25, 2024. Investors can subscribe through the Joint Lead Arrangers, which include Bangkok Bank, KASIKORNBANK, Siam Commercial Bank, CIMB Thai Bank, United Overseas Bank (Thai), Kiatnakin Phatra Securities and Asia Plus Securities, and via the TrueMoney Wallet application.
TRUE has submitted a registration statement and draft prospectus to the Securities and Exchange Commission (SEC) for a public offering of new debentures. These debentures are unsubordinated and unsecured, with a debentureholders’ representative, with a credit rating of “A+” and a “Stable” outlook from Tris Rating as of October 4, 2024. The subscription dates are scheduled to be August 21 – 22, and 25, with a minimum subscription amount of THB 100,000 and multiple of THB 100,000. The coupon will be paid every 3 months throughout the debentures’ term with details as follows;
- 1st tranche: 2-year tenor with a fixed coupon rate of 2.95% per annum
- 2nd tranche: 3-year tenor with a fixed coupon rate of 3.40% per annum
- 3rd tranche: 5-year tenor with a fixed coupon rate of 3.70% per annum
- 4th tranche: 7-year tenor with a fixed coupon rate of 3.86% per annum
- 5th tranche: 10-year tenor with a fixed coupon rate of 4.00% per annum, with a call option since the 5th
Ms. Yupa Leewongcharoen, Chief Financial Officer (Co) of True Corporation Plc., stated, “True Corporation continues to demonstrate strong growth, achieving its seventh consecutive quarter of EBITDA growth. This success has led to an improved normalized profit of THB 3.1 billion in Q3 2024. Service revenue, excluding interconnection charges, reached THB 41.5 billion, reflecting a 4.2% year-on-year increase, primarily driven by growth in mobile and online business segments. Service revenue growth, combined with efficiency improvements, has driven EBITDA to THB 25 billion in Q3 2024, marking a 16.5% year-on-year increase and a 2.7% increase from the previous quarter. Furthermore, the EBITDA-to-service revenue ratio rose to its highest level since the amalgamation, reaching 60.2% in Q3 2024. Our focus remains on effective cost management and leveraging artificial intelligence to enhance both customer service and internal processes. With this commitment to innovation, we are dedicated to meeting our customers’ needs in the best possible way.”
We are introducing new TRUE debentures with various tenors, designed to appeal to a wide range of investors including short-term (2 years and 3 years), medium-term (5 years), and long-term (7 years and 10 years), with longer tenors offering higher returns. The proceeds from these debentures will be used to refinance existing debentures.
With our ongoing operational and financial improvements, we believe TRUE debentures offer an attractive investment opportunity. We anticipate strong investor interest, similar to previous offerings. Additionally, on October 16, the Bank of Thailand reduced the policy interest rate by 0.25%, from 2.50% to 2.25%. The policy interest rate is expected to continue decreasing in the near future. Investing in TRUE debenture presents an opportunity for investors to secure long-term returns.
The company is in the process of submitting the registration statement and draft prospectus, which are not yet effective and are pending approval by the Securities and Exchange Commission (SEC). Investors can find more details about the debenture offering and draft prospectus at www.sec.or.th For additional information, please contact the seven joint lead arrangers listed below:
- Bangkok Bank Plc, all branches (excluding Micro Branch), or call 1333, or book online via Bangkok Bank Mobile Banking.
- KASIKORNBANK Plc, all branches, call 02 888 8888 ext. 869, or book online via KASIKORNBANK (excluding foreign nationals and legal entities; available through main and branch offices of KASIKORN Securities Plc.
- Siam Commercial Bank PCL., all branches, call 02 777 6784, or book online via SCB EASY app, including InnovestX Securities Co.,Ltd as an agent of Siam Commercial Bank PCL.
- CIMB Thai Bank Plc, all branches, call 02 626 7777, or book online via CIMB Thai app.
- United Overseas Bank (Thai) Plc, all branches, call 02 285 1555.
- Asia Plus Securities Co., Ltd., call 02 680 4004.
- Kiatnakin Phatra Securities Plc, call 02 165 5555, or book online via Dime! app, including Kiatnakin Phatra Bank Plc as an agent of Kiatnakin Phatra Securities Plc.
