Thai PTTEP launches digital bond
Thai state-run energy company PTTEP in association with Krungthai Bank is launching its first digital bond next month, Krungthai Bank said on October 12.
According to the bank, this is Asia's first fully digitalised corporate bond which will be offered to investors via its Pao Tang wallet. Investors can buy the bonds with only a 1,000-baht ($30) minimum subscription value.
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PTTEP CEO Montri Rawanchaikul said that his company is scheduled to determine the issue size by the end of October and the offering is set to be between November 2-4. "The proceeds from the bond issuance will be used for refinancing outstanding loans or bonds, as well as working capital for future growth of business," Montri added.
The bond, due in 2026, has the tenor of five years and bears a step-up interest rate with a minimum of 2%/year and the maximum of 2.75%/yr, averaging to 2.25%/yr. The interest will be paid every six months. Investors can subscribe with subsequent multiples of 1,000 baht and the maximum subscription is 10mn baht.
The bond was assigned AAA, the highest possible credit rating for domestic bonds, by TRIS Rating in September, Krungthai Bank said.