IRPC cuts $ bonds
IRPC is to cut the issue of its US dollar-denominated bonds from $400 million (Bt13.8 billion) to between $200 million and $300 million, due to the higher interest rate in the United States.
Chief executive Piti Yimprasert said that while the petrochemical company would still need to refinance debts worth $800 million, it would seek a lower amount of bonds. "We expect that our working capital could refinance about $200 million, while we are issuing baht bonds for the balance," he said yesterday. Since early this year, the Bank of Thailand has continually cut its policy rate, which will pave the way for further cuts in lending rates. A rate cut by the central bank on May 23 would further widen the gap between US and Thai policy rates. IRPC chief financial officer Banlue Chantadisai was quoted by Dow Jones Newswires as saying the company planned to offer the dollar bonds this month and the baht bonds next month. Its $800-million bridging loan expires in September. The company previously planned to issue $400 million of dollar bonds and another $400 million of baht bonds. Yesterday, IRPC signed an agreement with Shell Global Solutions, a technology arm of Shell Group, for a business-improvement programme. IRPC hopes the programme will help it to identify the optimum investment plan for an expansion of its refinery capacity and petrochemical facilities. Piti said the company would spend $60 million on the two-year programme, which is expected to boost revenue by at least Bt3 billion annually. Chalida Ekvitthayavechnukul, The Nation
|
