FTREIT's THB 2.5 billion debentures three times oversubscribed

Friday 25 June 2021 09:56
Successful issue of four debenture series with different tenors worth THB 2.5 billion to institutional investors with an overwhelming subscriptions of 3 times.The proceeds has been used for payment of debentures due in June 2021 as well as prepayment of a part of long-term loan.Frasers Property Thailand Industrial Freehold & Leasehold REIT or "FTREIT", the largest industrial REIT in Thailand, has successfully issued debentures No. 1/2021 totalling THB 2.5 billion. With United Overseas Bank (Thai) Plc. as the underwriter, the four series of debentures have tenors of three years, five years, seven years and 10 years.
FTREIT's THB 2.5 billion debentures three times oversubscribed

Mr. Peerapat Srisukont, Managing Director of Frasers Property Industrial REIT Management (Thailand) Company Limited or "FIRM", the REIT manager of FTREIT, said: "FTREIT issued the debentures totalling THB 2.5 billion under the limit in accordance with FTREIT unitholders' approval at the 2020 Annual General Meeting on 27 January 2020. Despite prevailing economic challenges from COVID-19 pandemic, the debentures were oversubscribed, reflecting investors' confidence in FTREIT's growth potential and management capabilities. This issuance enhances FTREIT to lower its weighted average cost of debt and increase its weighted average debt maturity."

This issuance has 4 series, Series 1: a debenture at amount of THB 850 million with a maturity of 3-year and fixed coupon rate of 1.69% p.a., redemption in 2024; Series 2: a debenture at amount of THB 700 million with a maturity of 5-year and fixed coupon rate of 2.54% p.a., redemption in 2026; Series 3: a debenture at amount of THB 700 million with a maturity of 7-year and fixed coupon rate of 3.30% p.a., redemption in 2028; and Series 4: a debenture at amount of THB 250 million with a maturity of 10-year and fixed coupon rate of 3.97% p.a., redemption in 2031.

On 31 May 2021, TRIS Rating, affirmed a 'A/Stable' rating on FTREIT and the debentures of FTREIT.
The proceeds from these debentures has been used for the payment of debentures totalling THB 1.8 billion due in June 2021 as well as the prepayment of a part of long-term loan of THB 700 million.

Source: Frasers Property (Thailand)