TUF sees demand for Bt1.5 billion bonds

By The Nation

Thai Union Frozen Products Plc is thriving despite the global credit squeeze, as investors have shown immense interest to subscribe to its two-year bonds worth Bt1.5 billion.

The company, which is the country's largest exporter of frozen and canned seafood products, is offering the interest of 4.7 per cent per annum for the bonds. It plans to issue two series of debentures, with maturities of 2 and 5 years. Both bonds were rated "A+" with stable outlook by Tris Rating Co Ltd.

The company decided to sound out demand before the offering of the first series, while working on the offering of the second series. A roadshow was staged two weeks ago to convince the public of its financial soundness and business outlook, amid the global crisis.

TUF noted that institutional investors - mutual funds, private funds and insurance companies - have shown interest to subscribe to the bond issue. At the coupon rate of 4.7 per cent, the bond's return is 1.21 percentage points above the government's bond yield of equivalent maturity.

HSBC will underwrite the 2-year bond issue. Proceeds will be used to expand the company's business.

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TUF sees demand for Bt1.5 billion bonds

Thai Union Frozen Products Plc is thriving despite the global credit squeeze, as investors have shown immense interest to subscribe to its two-year bonds worth Bt1.5 billion.

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