True Corporation Announces Debentures of 2.85-4.20% p.a.
True Corporation Announces the New A+ Rate Debentures Coupons Range of 2.85-4.20% p.a., Expected Subscription Open August 27 – 29, 2024
True Corporation Plc, Thailand’s leading telecom-tech company and the global leader in sustainability with the highest DJSI 2023 score in the telecommunications sector for the sixth consecutive year, announced a new series of debentures with fixed coupon rates between 2.85% and 4.20% per annum. The offering includes five tranches of debentures with tenors from 1 year 3 months to 10 years, designed to match all the investors’ preference. The expected subscription period is from August 27 to 29, 2024. Investors can subscribe through the Joint Lead Arrangers, which include Bangkok Bank, KASIKORNBANK, Siam Commercial Bank, CIMB Thai Bank, United Overseas Bank (Thai), Kiatnakin Phatra Securities and Asia Plus Securities, and via the TrueMoney Wallet application.
True Corporation Plc has submitted a registration statement and draft prospectus to the Securities and Exchange Commission (SEC) for a public offering of new debentures. These debentures are unsubordinated and unsecured, with a debentureholders’ representative, with a credit rating of “A+” and a “Stable” outlook from TRIS Ratings, as of July 11, 2024. The subscription dates are scheduled to be August 27 – 29, 2024, with a minimum subscription amount of 100,000 baht and multiple of 100,000 baht. The coupon will be paid every 3 months throughout the debentures’ term with details as follows;
• 1st Tranche: 1 year 3 months tenor with a fixed coupon rate of 2.85% per annum.
• 2nd Tranche: 2 years 6 months tenor with a fixed coupon rate of 3.45% per annum.
• 3rd Tranche: 3 years 3 months tenor with a fixed coupon rate of 3.65% per annum.
• 4th Tranche: 5 years 3 months tenor with a fixed coupon rate of 4.00% per annum.
• 5th Tranche: 10 years tenor with a fixed coupon rate of 4.20% per annum, with a call option since the 5th year.
Ms. Yupa Leewongcharoen, Chief Financial Officer (Co) of True Corporation Plc, said, “True’s financial performance has seen significant improvement, with Q2 2024 reporting a normalized profit of THB 2.4 billion and an EBITDA increase for the sixth consecutive quarters following the amalgamation of True and dtac. The progress was driven by a 5.7% year-over-year growth in service revenue, excluding IC, primarily from strong performances in both the mobile and online segments, coupled with more efficient cost optimization. In Q2 2024, True recorded an EBITDA of THB 24.3 billion, reflecting an improvement of THB 4.9 billion since the amalgamation. Additionally, our enhanced financial performance and prudent capital expenditure investments have improved our free cashflow which in turn has allowed us to reduce our interest-bearing debt.
We are introducing new TRUE debentures with various tenors, designed to appeal to a wide range of investors; short-term (1 year 3 months to 3 years 3 months), medium-term (5 years 3 months), and long-term (10 years), with the longer tenors offering higher returns. The proceeds from these debentures will be used to repay existing debentures
Given our ongoing operational and financial improvements, we believe TRUE debentures offer an attractive investment opportunity. We anticipate strong investor interest, similar to previous offerings. Investors seeking stable income amid a volatile bond market and potential policy rate cuts in late 2024 may find this a timely opportunity to secure long-term returns.”
The debentures offering information and draft prospectus are still under review by the SEC. Investors can find more details at www.sec.or.th or contact the joint lead arrangers listed below:
• Bangkok Bank Plc, all branches (excluding Micro Branch), or call 1333, or book online via Bangkok Bank Mobile Banking.
• KASIKORNBANK Plc, all branches, call 02 888 8888 ext. 869, or book online via KASIKORNBANK (Except Non-Thai passport holder and juristic persons can subscribe at head office and branches).
• Siam Commercial Bank Plc, all branches, call 02 777 6784, or book online via SCB EASY app, including InnovestX Securities Co.,Ltd as an agent of Siam Commercial Bank Plc.
• CIMB Thai Bank Plc, all branches, call 02 626 7777, or book online via CIMB Thai app.
• United Overseas Bank (Thai) Plc, all branches, call 02 285 1555.
• Asia Plus Securities Co.,Ltd., call 02 680 4004.
• Kiatnakin Phatra Securities Plc, call 02 165 5555, or book online via Dime! app, including Kiatnakin Phatra Bank Plc as an agent of Kiatnakin Phatra Securities Plc.
For those interested in subscribing via the TrueMoney Wallet, more information and instructions on how to apply for the TrueMoney Wallet Application and how to subscribe debentures can be found at www.truemoney.com. For assistance with the application process, please contact True Money Co., Ltd. at Tel. 1240, press 6.
True Corporation of More Than Ten Billion Baht Debenture
