The A2-rated deal was marketed with a range of 55bp to 65bp over Libor, and closed at the tight end with a coupon of 2.71%.
ôIssuing in yen allows the company to pay a low coupon rate, but the overriding factor for issuing this Samurai bond was to achieve greater market diversification,ö says one source. The company placed over 70% of its bonds in the Japanese market.
ôIssuing a Samurai was a brave move but ultimately successful. Thailand into Japan is not something you see a lot of,ö he continues. ôPTT as a group has a few entities that have issued a number of 10-year bonds (for example IRPC) so this was a strategy to allow them access to new markets - versus a dollar offering which could have potentially cannibalised their other group entitiesÆ offerings.ö
In terms of comparables, bankers quoted PTT PCLÆs own curve, namely its 2014 bonds (5.75%) which were trading at 42bp over Libor.
The funds raised from the transaction will be used for general corporate purposes.
PTT is Thailand's only fully integrated gas company, with a leading position in the marketing and trading of crude oil and refined petroleum products. In addition to these core businesses, PTT has invested in Thailand's petrochemicals and refining industries through interests in associated companies, as integrated value enhancers. With 2006 sales of Bt1,214 billion and net income of Bt95 billion, PTT is the largest corporate in Thailand, with the largest market capitalisation in the Thai Stock Exchange. PTT is 52%-owned by the Thai Ministry of Finance.
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