Bt12 bn in bonds from PTT Chem

PTT Chemical, Thailand's second-biggest petrochemical company, plans to sell as much as Bt12 billion in five- and seven-year bonds next month to finance expansion.

The bonds will be available for sale to investors from December 1-3, president and CEO Veerasak Kositpaisal said yesterday.

He said PTT Chemical had appointed six financial institutions to act as bond underwriters: Bangkok Bank, Kasikorn-bank, Krung Thai Bank, Siam Commercial Bank, TMB Bank and Tisco Securities.

The company will pay a 5.3-per-cent coupon in the first three years, and 6 per cent in the fourth and fifth years. The seven-year bonds will pay 6.45 per cent in the sixth and seventh years, he added.

Earlier, Fitch Rating (Thailand) ranked the company's credit rating A+.

PTT Chemical has also announced revenue of Bt71.6 billion and net profit of Bt15.9 billion for the first nine months of the year.

Veerasak said the company would raise funds through the bond market for investment expansion next year, as well as for working capital.

PTT Chemical joins Toyota Leasing and True Corp in selling debt this year.

The Bank of Thailand has said it expects more companies to raise funds locally because of the difficulty in tapping overseas sources amid the global financial crisis.