Debenture/GC

PTT Global Chemical issued US$1.1 billion subordinated perpetual debentures

Editorial staff

PTT Global Chemical Plc (GC) announced to the Stock Exchange of Thailand that GC Treasury Center Company (GCTC), together with six leading global banks, successfully issued subordinated perpetual securities denominated in US dollars, with a total value of US$1.1 billion, offered to international investors.

GC is Thailand's largest integrated petrochemical and refining company and a leading chemical company in the Asia-Pacific region, while GC Treasury Center Company (GCTC) is a wholly owned subsidiary of GC.

Six leading global banks included Bank of America, National Association; Citibank N.A. Bangkok Branch; HSBC Thailand; J.P. Morgan Chase Bank, Bangkok Branch; Mizuho Bank, Bangkok Branch; and Standard Chartered (Thai) Plc.

This transaction marked GC’s first-ever issuance of USD-denominated subordinated perpetual debentures, the first by PTT Group in eight years, and the first-ever issuance of this size in South and Southeast Asia.

The offer received overwhelming demand, attracting orders over eight times the issue size, underscoring strong confidence from international investors in GC’s capabilities and financial strength, alongside support from domestic investors.

This issuance underscores GC’s commitment to the strategy announced earlier this year to enhance financial liquidity through deleveraging.

It is a tangible step that improves cost management efficiency and strengthens liquidity, laying a solid foundation for GC’s resilient and sustainable growth amid global economic and petrochemical industry uncertainties.”

“The success of this issuance not only reflects the confidence of investors worldwide but also demonstrates GC’s milestone in its financial strategy to strengthen our financial position, reduce leverage, and improve cost management efficiency. At the same time, it enhances our resilience in navigating the uncertainties of the global economy and the petrochemical industry,” Narongsak Jivakanun, chief executive officer of GC said.

Thitipong Jurapornsiridee, GC’s executive vice president for finance and accounting, said GC will continue to strengthen its financial management to support the company’s sustainable growth in high-value, low-carbon businesses.

The instruments issued by GCTC are unsecured and subordinated perpetual debentures, redeemable only upon liquidation, with the issuer retaining the right to redeem early and to defer coupon payments unconditionally.

The issuance comprises two tranches: US$600million with a coupon rate of 6.5% per annum for the first five years and three months from issue date and US$500 million with a coupon rate of 7.125% per annum for the first ten years from issue date.

Both tranches are fully guaranteed by GC and have been assigned a rating of Ba2 and BB by Moody's and Fitch Ratings, respectively, and will be listed on the Singapore Exchange Securities Trading Limited (SGX-ST).

Proceeds from this issuance will be used to fund the tender offer for GCTC’s existing debentures currently outstanding, as well as for general corporate purposes, including, but not limited to, debt repayment and on-lending to entities within GC Group.