AIS issues 4-year and 7-year shares with AAA rating.
AIS Prepares to Issue its First Sustainability Bonds in the Thai Telecommunications Industry to General Investors, Highlighting a “AAA(tha)” Credit Rating
Advanced Info Service Public Company Limited (“the Company” or “AIS”), a leading telecommunications service provider and digital infrastructure in Thailand, including mobile networks and broadband internet with a customer base of over 50 million, is preparing to offer its first ‘Sustainability Bonds’ in the Thai telecommunications industry. These bonds will have terms of 4 and 7 years, and will be available for subscription through general investors. The subscription period is expected to take place during 8 and 11-12 November 2024. The Company is confident that this bond offering will create investment opportunities in a stable, growing company that aligns with sustainable development. Highlighting a “AAA(tha)” credit rating (Watch negative) from Fitch Ratings (Thailand) Limited as of 4 September 2024, it reflects the strength of the business operations and a stable financial status. The issuance will be managed by seven leading financial institutions, including Bangkok Bank, KASIKORNBANK, Krung Thai Bank, Siam Commercial Bank, Bank of Ayudhya, United Oversea Bank (Thai), and Kiatnakin Phatra Securities.
Montri Khongkruephan, Chief Finance Officer AIS, stated, “This issuance of sustainability bonds will strengthen and support the growth of AIS’s sustainable business operations under the vision to become a Cognitive Tech-Co, part of the Sustainable Nation initiative aimed at fostering Thailand’s sustainable growth through an ECOSYSTEM ECONOMY encompassing people, society, the economy, and the environment in the digital world. Our focus is on developing efficient digital infrastructures, including the 5G network that already covers over 95% of the population area, the Broadband internet services that are accessible to more than 13.3 million households nationwide, and digital platforms for enterprise customer that enhance the potential of the country’s key business and industrial sectors. The objective of this bond issuance is to invest in projects related to energy efficiency and the expansion of the 5G network to enhance access to digital infrastructure for the public or households in remote areas.
These Sustainability Bonds will be offered to general investors (Public Offering) in two series, with terms of 4 years and 7 years, to match the diverse needs of investors. Interest payments will be made every six months throughout the bond’s term. The minimum subscription for general investors is set at 100,000 baht, with increments of 100,000 baht. Details of the interest rates will be announced later. The Company is confident that these bonds will be well received by investors who are looking to invest in one of the most stable companies in the country.”
For the first half of the year 2024, the Company reported a primary service revenue of 79,665 million baht, an increase of 18% compared to the same period last year. This rise was driven by the growth in mobile services revenue, which increased by 4.0% from the previous year, spurred by increased data usage and revenue related to the recovery in tourism. Additionally, the Fixed-Broadband revenue saw robust growth of 159% from the same period last year due to TTTBB revenue recognition and expansion into new areas, along with an increase in ARPU from strategies promoting bundled content services. Revenue from Enterprise services and other segments increased by 33% compared to the same period last year, due to TTTBB revenue recognition and growing demand for digital communication and cloud connectivity services. The Company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 21% from the same period last year, reflecting the performance of TTTBB and the growth of regular business operations. The net profit for the first half of 2024 was 17,028 million baht, an increase of 22% compared to the same period last year, due to improved operations and the recognition of profit share from 3BBIF.
Montri furthers on AIS’s approach to sustainable business operations, stating, “Beyond our strength in business operations from our advanced digital infrastructure that keeps us at the forefront, AIS also has a major goal to foster sustainable growth. This includes Drive Digital Economy to support growth in people and business sectors within the Digital Economy, as well as Promote Digital Inclusion, a society that promotes the creative and safe use of technology, equipping individuals with digital citizenship skills. The last dimension is our Act on Climate where we focus on reducing impacts through managing business processes and supply chains with innovation, solutions, and various activities that help reduce greenhouse gas emissions and manage waste from our operations through reduction and recycling and promoting proper disposal of E-Waste. All these are part of our ongoing goals for sustainable business operations that aim to Thrive in a greener and inclusive digital world.”
Fitch Ratings assesses that AIS has a strong market position in the mobile business, with around a 48% revenue market share and believes that the mobile sector will benefit from further rational price competition in Thailand, which will support AIS’s average revenue per user and revenue growth.
The Company is currently in the process of filing its registration statement for offer for sale of debt securities and draft prospectus to the Securities and Exchange Commission (SEC), which are not yet effective. The subscription period is expected to take place during 8 and 11-12 November 2024. Investors can seek for more details from the registration statement and draft prospectus at www.sec.or.th or information further https://investor-th.ais.co.th/news.html/id/2510115/group/sustainable_finance or inquire further at the seven arrangers for the bonds, which include:
• Bangkok Bank Public Company Limited (excluding Micro branches). Call 1333 or subscribe via the Bangkok Bank Mobile Banking application for individual investors.
• KASIKORNBANK Public Company Limited, all branches. Call 02-888-8888, press 869, or subscribe online through https://www.kasikornbank.com/kmyinvest (excluding foreigners and legal entities, who can subscribe through the head office and branches), including Kasikorn Securities Public Company Limited as the sales unit of KASIKORNBANK Public Company Limited.
• Krungthai Bank Public Company Limited, all branches. Call 02-111-1111 or subscribe online via the Krungthai NEXT app (only for individual investors).
• Siam Commercial Bank Public Company Limited, all branches. Call 02-777-6784 or subscribe online via SCB EASY app, including InnoVestX Securities Company Limited as the sales unit of Siam Commercial Bank Public Company Limited.
• Bank of Ayudhya Public Company Limited, all branches. or Call 1572.
• UOB Bank Public Company Limited, all branches or Call 02-285-1555.
• Kiatnakin Phatra Securities Public Company Limited. Call 02-165-5555 or subscribe online via the Dime! app, including Kiatnakin Phatra Bank as the sales unit of Kiatnakin Phatra Securities Public Company Limited.
