PTT Global Chemical to Issue New Thai Baht-Subordinated Hybrid Debentures

Strategic Insights -

PTT Global Chemical Public Company Limited (GC) is planning to issue new Thai Baht-subordinated hybrid debentures through a Public Offering (PO) in late 2025 as part of the company's ongoing Deleveraging Program. The debentures aim to strengthen GC's long-term capital structure, enhance financial flexibility, and ensure readiness amid global economic and geopolitical challenges. GC's high-value, low-carbon sustainable growth strategy is aligned with its Portfolio Transformation strategy and commitment to financial discipline.

Key Takeaways:

  • The debentures are part of GC's ongoing Deleveraging Program, aimed at strengthening the company's long-term capital structure and enhancing financial flexibility.
  • The debentures have been rated A (tha) by Fitch Ratings (Thailand), placing them among the highly-rated instruments in the Thai bond market.
  • The minimum subscription amount for the debentures is 100,000 Baht, with additional multiples of 100,000 Baht available through 12 financial institutions.
  • The interest rate and subscription period for the debentures will be announced later.
  • GC has received a corporate credit rating of AA- (tha) with a "stable" outlook from Fitch Ratings (Thailand).
  • The company's subordinated hybrid debentures are recognized as 100% equity in accounting terms, while credit rating agencies grant 50% equity credit.

Statistics:

  • The debentures are expected to be offered to the general public through a Public Offering (PO) in late 2025.
  • The minimum subscription amount for the debentures is 100,000 Baht.
  • GC has a strong investor response to its THB 17 billion hybrid debentures issued in 2024, reflecting investor confidence in GC's and the PTT Group's solid fundamentals.
  • GC operates under a long-term capital management roadmap to reinforce financial resilience and support its credit rating.
  • The company aims to achieve Net Zero by 2050 through its High Value-Low Carbon growth strategy.

Sources:

  • PTT Global Chemical Public Company Limited
  • Fitch Ratings (Thailand)
  • Bangkok Bank Public Company Limited
  • CIMB Thai Bank Public Company Limited
  • KASIKORNBANK Public Company Limited
  • Krung Thai Bank Public Company Limited
  • The Siam Commercial Bank Public Company Limited
  • Kiatnakin Phatra Securities Public Company Limited
  • Asia Plus Securities Company Limited
  • Bank of Ayudhya Public Company Limited
  • Krungthai XSpring Securities Company Limited
  • Maybank Securities (Thailand) Public Company Limited
  • TMBThanachart Bank Public Company Limited
  • Yuanta Securities (Thailand) Company Limited