Leading real estate and retail developer Siam Piwat is preparing to issue the first-ever perpetual bonds to attract institutional and high-net-worth investors in the first week of August.
The bonds have an estimated interest rate of 5.25-5.50% per annum in the first five years and will be paid out quarterly.
The minimum subscription amount is 1 million baht.
Siam Commercial Bank, Thanachart Securities Plc, KGI Securities (Thailand) Plc, Asia Plus Securities Co and IV Global Securities Plc have been appointed as the underwriters of the debentures.
Siam Piwat said it would use proceeds from the bond issuance to pay for the leasehold on land and to improve all of its shopping centres to strengthen its core businesses.
It also wants to create digital platforms that will connect its core businesses to new endeavours in collaboration with partners in its ecosystem.
Furthermore, the firm aims to leverage its expertise and experience in the management of shopping centres, office buildings and residential buildings to further expand its real estate service business in the next 1-3 years.
As of June 30, Tris Rating assigned Siam Piwat a company rating of A- with a stable outlook, and the perpetual bonds were rated BBB with a stable outlook.
The investment grade ratings reflect Siam Piwat Group's reliability, potential and strength as a world-class real estate and retail developer.
Chadatip Chutrakul, chief executive of Siam Piwat Group, said her firm has continuously posted strong growth over the past 63 years of its operations and established a robust high-spending customer base domestically and internationally, and garnered world-class accolades.
"While it has never offered investors opportunities to take part in its businesses thus far, Siam Piwat is now driving its strategies to build an ecosystem by creating shared value with business partners across various dimensions, and it will, for the first time ever, engage high-net-worth investors to take part in Siam Piwat's businesses," she said.
Siam Piwat also has a stringent policy to maintain the debt-to-equity ratio at a low level. As of Dec 31, 2021, the ratio was 0.99 times.
