GULF Reports of 2.44x Oversub in Debentures, Exercising Extra ฿2Bn of Greenshoe for Subs

Gulf Energy Development Public Company Limited (GULF) announced that on August 19, 2020, GULF issued unsecured and unsubordinated debentures valued 10,000 million baht. GULF appointed Bangkok Bank Public Company Limited (BBL) and Siam Commercial Bank Public Company Limited (SCB) as Joint Lead Underwriters. GULF was assigned the company rating ‘A’ and the debentures were assigned rating ‘A-’ by TRIS Rating Company Limited.

 

GULF expressed its intention to issue and offer debentures to institutional investors and high net worth investors valued 8,000 million baht and greenshoe valued 4,000 million baht; however, a considerable number of institutional and high net worth investors expressed interest in the debentures and indicated their intention to subscribe in the offerings, resulting in an oversubscription of 2.44 times. GULF, therefore, exercised its greenshoe option of 2,000 million baht, totaling 10,000 million baht.

 

The company issued four series of debentures as follows;

1) A 3-year debenture at the amount of 4,500 million baht with a 2.65% interest rate.

2) A 5-year debenture at the amount of 2,500 million baht with a 3.10% interest rate.

3) A 7-year debenture at the amount of 2,000 million baht with a 3.34% interest rate.

4) A 10-year debenture at the amount of 1,000 million baht with a 3.46% interest rate.

 

GLF plans to use all the proceeds from the offerings to repay short-term loans from financial institutions in order to match the long-term financing with long-term investments of the company.