STA Successfully Issued THB 2,000 Million Thai Baht Bonds With More Than 5 Times Oversubscription, Reflecting Investor Confidence in Strong Business Performance
Sri Trang-Agro Industry Public Company Limited (“STA” or “The Company”) , the world’s leading fully integrated natural rubber company and Thailand’s largest glove producer, successfully issued senior unsecured Bonds of THB 2,000 Million during 19-21 July 2021, placed to institutional and high-net-worth investors with overwhelmed 5 times oversubscription. The well received demand from investors has reflected the investor confidence in business performance and the potential growth driven by the natural rubber industry outlook and the continuous growth in glove business amidst uncertainty under the COVID-19 situation. In FY2020, the Company recorded THB 75,478.7 million in revenue, growing 25.2% YoY, and reported an all-time-high net profit of THB 9,531.2 million. During 1Q21, STA recorded THB 31,579.5 million in revenue, growing 80.6% YoY and reported an all time-high net profit of THB 5,958.5 million.
Mr. Veerasith Sinchareonkul, Director, Sri Trang-Agro Industry Public Company Limited, revealed that during 19-21 July 2021, STA has successfully issued senior unsecured Bonds with Bondholders’ representative amounting to THB 2,000 Million for the Company’s working capital, placed to institutional and high-net-worth investors. The Bonds were rated “A-” with “stable” outlook by TRIS Rating Co., Ltd. on 18 June 2021. The Bonds were well received by investors with 5 times oversubscription, representing investor confidence in our strong business and financial performance including the Company’s potential growth.
The Bonds were comprised of 2 tranches which were 3-year bond with a fixed interest rate of 1.79% p.a. amounting to THB 1,500 Million and 4-year bond with a fixed interest rate of 2.75% p.a. amounting to THB 500 Million. The Bonds were arranged by The Siam Commercial Bank Public Company Limited as the Lead Arranger.
“STA would like to thank investors for their trust and interest in subscribing for STA Bonds and we would like to also thank The Siam Commercial Bank Public Company Limited, the Lead Arranger, for their support and contribution to this success. The use of the Bond proceeds will be for the Company’s working capital. The achievement of this Bond offering will support us to continue issue Bonds in the future as an alternative investment for investors and making us being a part to support the Thai Debt Capital Market going forward” said Mr. Veerasith.