CPFTH Issues 5-Series Debentures with A+ Rating for Institutions and Major Investors

CPF (Thailand) Public Company Limited (CPFTH), a subsidiary of Charoen Pokphand Foods Public Company Limited (CPF) holding 99.99% stake in, has filed the Registration Statement with the Office of the Securities and Exchange Commission (SEC) in order to issue and offer unsubordinated and unsecured debentures with debenture holder representative to institutional investors and/or high net worth investors.The offering comprises 5 series of debentures with tenors of 4 years and 6 months, 7 years, 10 years,12 years, and 15 years, all of which have been assigned a credit rating of A+ from TRIS Rating Co., Ltd. on 10 June, 2020. 

 

In this regard, CPFTH has appointed Krungthai Bank, Kasikorn Bank, Siam Commercial Bank, Government Savings Bank, CIMB Thai Bank, TMB Bank, and Phatra Securities as the joint lead arrangers for this batch of debentures which are expected to be offered within 20 August 2020.

 

Mr. Paisan Chirakitcharern, Chief Financial Officer of CPF, disclosed that CPFTH is a subsidiary of CPF that operates integrated agro-industrial and food businesses in Thailand. CPFTH’s business encompasses integrated operations in Thailand relating to livestock comprising swine, broiler, layer, and duck. CPFTH’s operation covers 3 core livestock business lines, namely 1) Feed, i.e. production and sale of animal feed; 2) Farm-Processing, i.e. breeding, commercial farming, and primary meat processing; and 3) Food, i.e. production of processed semi-cooked and fully-cooked meat and production of ready-to-eat meals, including retail and food outlets with renown brands such as CP Fresh Mart, Five Stars, Star Coffee, and CP Kitchen, Korean BBQ restaurant chain “DakGalbi”, and seafood and International-food buffet restaurant chain “CP Hilai Harbour”.

 

In 2019, CPFTH’s operating income was over 144 billion baht (accounting for 27% of CPF’s) and its EBITDA stood at 7.2 billion baht (accounting for 15% of CPF’s). In 1Q/2020, due to the higher prices of  livestock products compared with previous year and the lower average prices of feed raw materials were conducive factors leading to a good performance. CPFTH’s sales revenue increased 7% YOY while its gross profit margin grew to 13% in 1Q/2020 compared with 9% in 1Q/2019.

 

In this regard, the joint lead arrangers are positive that all 5 series of debentures offered will be well received, particularly by investors are looking to invest in debenture of companies that are stable, reliable in businesses and opportunity to grow. Furthermore,CPFTH underwent minor impact from the economic recession following the outbreak of the novel coronavirus or COVID-19 because its products are daily necessities. CPFTH’s strength is  also reflected in the credit rating of A+, reinforcing CPFTH’s standing as a prominent subsidiary of CPF in Thailand.

 

For investors seeking more information about CPFTH’s debenture offering, the detailed updates can be found at www.sec.or.th or contact the following financial institutions.
Krung Thai Bank Public Company Limited Tel. 02-111-1111
Kasikorn Bank Public Company Limited Tel. 02-888-8888 ext. 819
The Siam Commercial Bank Public Company Limited Tel. 02-777-6784
Government Savings Bank Tel. 02-299-9245
CIMB Thai Bank Public Company Limited Tel. 02-626-7777
TMB Bank Public Company Limited Tel. 02-299-1111
Phatra Securities Public Company Limited Tel. 02-305-9442