STA Favors Cooperatives in Its Offering of 10-Years-To-Maturity Bonds Worth THB1,180 Million Highlighting Fixed Annual Yield of 3.94%
Sri Trang Agro-Industry Pcl. (STA), the world’s largest producer of integrated natural rubber products and Thailand’s largest producer of latex gloves, is prepared to offer corporate debentures with 10 years to maturity worth THB1,180 million. The issue, carrying a fixed annual interest rate of 3.94%, has been rated “A-” with “positive” outlook by Tris Rating. This will be offered to investors from cooperatives through four underwriters.
Mr. Veerasith Sinchareonkul, Chief Executive Officer and Executive Director of Sri Trang Agro-Industry Public Company Limited (STA), says the company will offer an issue of senior unsecured bonds with a bond-holder representative that has 10 years to maturity with a total face value of THB1,180 million. The issue carries a fixed annual yield of 3.94% with biannual payout through to maturity. Targeted clients are investors who are cooperatives. The bonds are underwritten by the Bangkok Bank, the Bank of Ayudhaya, Kasikornbank, and Siam Commercial Bank.
Tris Rating has given the bond issue an “A-” rate with “positive” outlook, reflecting the company’s strong foundation, outstanding performance, stable financial standing as well as its potential as the world’s largest provider of integrated natural rubber products.
The fund raised from this bond offering will be used as working capital in support of sales which are expected to be rising steadily. Besides adding strength to its performance, the sales increases will help achieve the company’s goal to boost its share in the domestic rubber industry as well as in the world market, thus securing for the company the leadership position in the industry.
In the meantime, STA is determined to intensify efforts to grow its business in Q1/2022. The supporting factors for growth include increasing production capacity and the early recovery of the natural rubber industry as well as the company’s plan to steadily expand capacities throughout the year. In 2021, meanwhile, the company earned the highest revenues in a decade with earnings from sales and services amounting to THB118,275.4 million, an increase of 56.7% from the year before, and a net profit of THB15,846.7 million, the highest since the company was established.