(EnergyAsia, October 31 2012, Wednesday) — Thai state oil and gas company PTT said it has raised US$1.1 billion from an international bond issue that was oversubscribed by more than 10 times.
The company said the sale of its bond, with a “BBB+” rating from Standard and Poor’s and “Baa1” from Moody’s, established a record-low coupon reference for future issuance from Thai borrowers.
The sale, arranged by Barclays, Citi, Deutsche Bank and J.P. Morgan, comprised US$500 million worth of 10-year bonds with a coupon rate of 3.375% and US$600 million worth of 30-year bonds at 4.5%. The coupon rates are 160 basis points above US Treasurys.
Pailin Chuchottaworn, President and CEO of PTT Public Company Limited, said the successful issuance not only allowing the company to lock in long-term funding at very attractive rates, but also established a new benchmark curve in the international capital markets for PTT and Thai borrowers.
PTT, which last tapped the international bond market in July 2005, said the proceeds will be used for general use and capital expenditure.