EDL-Generation, the leading electricity producer in Laos, has successfully priced its debut US$312 million (approximately Bt10.8 billion) offering of dollar-denominated bonds in Thailand.
According to a statement by Standard Chartered Bank (Thai), this transaction by EDL-Gen has become the largest FX Bond transaction ever offered in Thailand and EDL-Gen became the first corporate issuer who could achieve 12-year tenor from Thailand’s FX Bond markets. The 12-year tranche has also become the longest-dated bonds ever completed by EDL-Gen.
“We are pleased to have successfully completed another landmark cross-border transaction in Thailand, becoming the first foreign corporate issuer to raise US dollar in the markets, thanks to the investors’ confidence in EDL-Gen’s credits. This transaction has also demonstrated strong financial market integration between the two countries, which would advance us toward the goals of Asean Economic Community,” said Rattana Prathoumvan, managing director and chief executive officer of EDL-Gen.
StanChart and Krungthai Bank are the joint lead arrangers of the deal.
The bonds were issued to specialised financial institution (48.1 per cent), insurance companies (43.3 per cent), local high net worth investors (2.2 per cent) and non-resident high net worth investors (6.4 per cent). This marked the first time that FX Bond transaction was placed to both local and non-resident High Net Worth investors, underlining the credit strength of EDL-Gen among investing community.
EDL-Gen issued a baht-bond issue worth Bt6.5 billion in December 2014.
“This transaction has raised the bar for Thailand as one of the premier regional debt capital markets with sophistication and depth of its capital markets supported by strong investor appetite, market liquidity and accommodative regulatory framework,” said Adisorn Singhsacha, founding partner and managing director of Twin Pine Group which is the sole advisor.
To Asad Haque, executive director, Debt Capital Markets, Asean, Standard Chartered Bank, the innovative cross-border transaction is a breakthrough.
“Not only will this help EDL-Gen grow and become more sophisticated, this deal is also important to the sustainable economic development of the Lao People’s Democratic Republic. Essentially, EDL-Gen is key to the country’s infrastructure development, and will continue to play a significant role in fueling the nation’s growth and advancement. As an international bank with full presence in all ten Asean markets, Standard Chartered is especially proud of this deal which set new industry benchmarks and fulfils our ‘Here for Good’ brand promise for the region,” he said.