First time in 10 years for PTT Group. GC preparing to issue subordinated hybrid debentures with an initial call option at 5 years and 6 months

Mr. Thitipong Jurapornsiridee, Executive Vice President - Finance and Accounting at PTT Global Chemical Public Company Limited (GC), revealed that GC is preparing to issue subordinated hybrid debentures, payable upon dissolution with the Issuer's right to early redemption and unconditional interest deferral, and the subordinated hybrid debentures will be offered to general public via the placement of Public Offering (Public Offering). The issuance will support debt reduction plans and strengthen GC's financial structure for future growth (#NextStepwithSustainableGrowth). GC believes these subordinated hybrid debentures will provide a stable and worthwhile alternative investment for retail investors, especially given the return of PTT Group's subordinated hybrid debentures issuance in the past 10 years.

Mr. Thitipong Jurapornsiridee, added that GC has established various measures to reduce debt and enhance profitability to ensure sustainable growth amid the cyclical fluctuations of the petrochemical business. During the gradual recovery of petrochemical industry, GC has adopted the 3 Steps Plus strategy to bolster competitiveness and growth. This strategy includes:

1. Step Change: Enhancing competitiveness and maintaining the business base, aiming for GC to become the petrochemical hub of PTT Group in Southeast Asia and beyond.
2. Step Out: Expanding growth in the Specialty Chemicals business domestically and internationally for future growth.
3. Step Up: Ensuring business sustainability for GC within the framework of Environmental - Social - Governance (ESG) and targeting net zero greenhouse gas emissions.

Currently, GC has a business restructuring plan that may involve accounting impacts such as asset impairments which are non-cash and one-time transactions. Nevertheless, this restructuring will strengthen GC business in the long run.

The upcoming subordinated hybrid debentures issued by GC aim to enhance flexibility and strengthen the capital structure to support sustainable future growth. The proceeds from this issuance will be used to repay both domestic and international GC's existing debt. GC's subordinated hybrid debentures will be counted as 100% equity in accounting terms, similar to the subordinated hybrid debentures issued by other companies.

The company expects to receive 50% equity credit from the three major global credit rating agencies: 1) Moody's Investors Service, 2) S&P Global Ratings, and 3) Fitch Ratings Inc., known as the "Big Three" in credit rating. Therefore, the debentures being issued will have a different structure compared to other subordinated debentures previously offered in Thailand, especially regarding the interest rate adjustments as Moody's will only grant 50% equity credit if there are no interest rate adjustments or step-ups in the first 10 years. According to S&P, GC expects to receive 50% equity credit only during the first 5 years and 6 months. After that, it will be considered entirely as debt. This aligns with GC's option to early redeem the subordinated hybrid debentures, exercisable from 5-years 6-months after the issue date, which is purposely set to manage the company's debt repayment profile accordingly.

Currently, GC is in the process of filing the registration statement and draft prospectus with the Securities and Exchange Commission (SEC), which has not yet taken effect. GC will announce the final interest rate and subscription date later. For general investors, the minimum subscription amount is 100,000 baht and in multiples of 100,000 baht. Those who are interested can study further details and the terms and conditions in the draft prospectus and inquires more information at the followings 12 arrangers:

• Bangkok Bank Public Company Limited, at all branches (except micro branches) or call 1333, or subscribe online via Bangkok Bank Mobile Banking.
• CIMB Thai Bank Public Company Limited, at all branches, or call 02-626-7777.
• KASIKORNBANK Public Company Limited, at all branches, call 02-888-8888 press 869, and at KASIKORN Securities Public Company Limited as a sales agent of KASIKORNBANK Public Company Limited.
• Kiatnakin Phatra Securities Public Company Limited, call 02-165-5555, or subscribe online via Dime! app and at Kiatnakin Phatra Bank Public Company Limited as a sales agent of Kiatnakin Phatra Securities Public Company Limited.
• Krung Thai Bank Public Company Limited, at all branches, or call 02-111-1111, or subscribe online via Money Connect by Krungthai in Krungthai NEXT application.
• The Siam Commercial Bank Public Company Limited, at all branches, or call 02-777-6784, or subscribe online via the SCB EASY App, and at InnovestX Securities Co., Ltd., as a sales agent of the Siam Commercial Bank Public Company Limited.
• Asia Plus Securities Company Limited, call 02-680-4004.
• Bank of Ayudhya Public Company Limited, at all branches, or call 1572.
• Krungthai XSpring Securities Co., Ltd., call 02-695-5000.
• Maybank Securities (Thailand) Public Company Limited, call 02-658-5050.
• TMBThanachart Bank Public Company Limited, at all branches, or call 1428, press #4 (booking is open only to institutional investors), and at Thanachart Securities Public Company Limited as a sales agent of TMBThanachart Bank Public Company Limited.
• Yuanta Securities (Thailand) Co., Ltd., call 02-009-8351-56.

Note:

• The registration statement and draft prospectus have not yet become effective as they are under the consideration of the Securities and Exchange Commission (SEC).
• The allocation of the debentures is at the discretion of the arrangers as deemed appropriate.

Disclaimer:

• Investments carry risks. Investors must study and understand the product characteristics, the conditions of returns, and the risks before making an investment decision.
• Investors can find more details in the information filing and draft prospectus at www.sec.or.th.

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