‘CP ALL Digital Bond’ via ‘Pao Tang’
CP ALL is set to offer a 5-year digital bond for the first time via “Pao Tang” mobile app. In collaboration with Krungthai Bank, the bond is made more accessible to investors due to its minimum investment of only 1,000 baht The bond, boasting A+ Credit rating and 3.25% per annum interest rate, is expected to be sold from 24 to 26 May 2022
CP ALL, the operator of 7-Eleven convenience stores and 7-Delivery as well as the major shareholder of Siam Makro Public Company Limited, has joined hands with Krungthai Bank to offer a 5-year digital bond with interest rate of 3.25% per annum to be paid every 6 months. The bond will be offered for the first time via the digital bond wallet on Pao Tang mobile application. With the minimum investment requirement of only 1,000 baht, general investors will have equal access to the digital bond. This will satisfy the need for investing in a robust business which is a leader in the retail industry and has high growth potential. The bond, rated “A+” by TRIS Rating, is expected to be offered from 24 to 26 May 2022.
Kriengchai Boonpoapichart, Chief Financial Officer of CP ALL Public Company Limited, said the CP ALL digital bond to be offered is a name-registered, unsubordinated, and unsecured bond with a bondholders’ representative. It has the tenor of 5 years and bears an interest rate of 3.25% per annum, which will be paid every 6 months. The issue was assigned an “A+” rating with stable outlook by TRIS Rating on 15 March 2022. This offering will be the first time a CPP ALL bond is offered to the general public via an easily-accessible, convenient, secure digital channel, in a manner in line with the slogan “One-stop Convenience,” making it suitable for retail investors, especially the younger generation, who want an access to corporate bonds with satisfying returns and only 1,000 baht minimum investment requirement.
“We are confident that the offering of the CP ALL digital bond will be well-received by investors, who have confidence in us because of our stability, high growth potential, and leading status in Thailand’s retail industry. At the same time, we prioritize our approach to offering online services with O2O and omni-channel strategies, bridging offline and online channels. We have ALL Online, which is based on the concept of “One-stop Convenience,” and 7-Eleven Delivery, which offers home delivery service for orders made via our mobile application. This allows us to respond to the changing lifestyle of consumers,” said Kriengchai.
CP ALL operates mainly in convenience store business, having its convenience stores located in every province. It is committed to deliver products and services to its customers with superior convenience, variety and customer experience under its “7-Eleven” brand. As at 2021 year end, there were 13,134 7-Eleven stores nationwide and the company plans to open 700 more this year.
Rawin Boonyanusasna, Senior Executive Vice President, Head of Global Markets Group at Krungthai Bank, said Krungthai Bank is highly committed to leveraging technology and innovation to constantly develop its financial products and services to cover diverse needs of all groups of customers and offer them on digital channels that are easy to access, convenient to use and secure. Moreover, the bank encourages the Thais to plan their savings and investment to ensure a stable future by developing suitable investment products and placing them on Pao Tang mobile application developed by Infinitas by Krungthai to be Thailand’s open digital platform. The mobile application is available to all, including those who do not have a Krungthai bank account. It is also open for partnerships with public and private organizations to maximize its potential so as to cover a wider range of activities of customers and Thai people in the areas such as financial services, health, lifestyle, as well as savings and investment.
Most recently, it has joined hands with CP ALL to offer a digital bond via Pao Tang app, allowing investors to have an equal, inclusive and equitable access to investing in the digital bond issued by CP ALL, a leader in the country’s retail industry. The trading of the bond can be done with great speed and convenience, 24 hours a day in real time. Investors can also see bond holding information and trading prices within the app. Furthermore, thanks to blockchain technology, the platform is highly transparent and verifiable.
“This collaboration with CP ALL is a major step in uplifting corporate bond investment in retail business as well as in expanding the capacity of Pao Tang app to better respond to needs for savings and investment, which are fundamental to strong and sustainable financial health. It also contributes to addressing several of the Sustainable Development Goals (SDGs) as it leverages technology to develop and improve the efficiency of Thai capital market as well as offering services that promote economic growth. Furthermore, it helps to address environmental issues as it is scripless; there is no need to travel physically to a bank branch and transactions can be completed online in Pao Tang, a digital platform with over 33 million users which most Thai people are already familiar with. This reduces social inequality by allowing all groups of people access to investment via a transparent, secure and verifiable platform. It is also in alignment with the sharing economy and helps to improve the liquidity of the Thai bond market.”
Those who are interested in subscribing to AP ALL digital bond can now register for the digital bond wallet on Pao Tang app, The bond is expected to be available for subscription from 08:30 hrs. on 24 May 2022 to 15:00 hrs. on 26 May 2022 or until it is fully subscribed, whichever comes first. The minimum subscription is 1,000 baht with subsequent multiples of 1,000 baht and the maximum subscription is 50 million baht per investor. For more information on how to register for Pao Tang app and digital wallet, please visit www.krungthai.com/th/krungthai-update/promotion-detail/916. For more information on the CP ALL digital bond, please consult the prospectus which is available at https://market.sec.or.th/public/ipos/IPOSDE01.aspx?TransID=411234&SD=, or make an enquiry at Krungthai Contact Center at 02-111-1111 or at any Krungthai branch.
Marketing Strategy Team
