Sri Trang Agro-Industry Public Company Limited (STA) announces the final coupon of four series of bonds with maturities ranging from 3 to 10 years, offering interest rates between 3.40% - 4.00% per annum.
These bonds will be available for public subscription, with subscription period during January 31 and February 3–4, 2025. The bonds have been assigned a credit rating of “A-/Stable” reflecting STA’s strong financial position and the sustained growth of the natural rubber industry.
Sri Trang Agro-Industry Public Company Limited (STA), is preparing to issue four series of bonds with maturities ranging from 3 to 10 years, with the coupon rate between 3.40% - 4.00%. The expected subscription period is during January 31 to February 3–4, 2025, through Krungthai Bank Public Company Limited and KASIKORNBANK Public Company Limited. The bonds have been assigned a credit rating of “A-/Stable” by TRIS Rating Co., Ltd. as of November 25, 2024, highlighting STA’s strong financial standing and leadership in the global natural rubber industry. For the first nine months of 2024, STA reported impressive growth, achieving operating revenue of over THB 81.3 billion, EBITDA of THB 5.3 billion, and a net profit of THB 816.0 million, underscoring the company’s robust performance and resilience in a competitive market.
Mr. Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited (STA), the world’s largest fully integrated natural rubber business and Thailand’s leading rubber glove manufacturer, announced that the company is preparing to offer unsubordinated and unsecured bonds with bondholder representatives to the general public. The bonds will be available in four tranches as follows:
- 3-year bonds with an interest rate of 3.40%
- 5-year bonds with an interest rate of 3.70%
- 8-year bonds with an interest rate of 3.85%
- 10-year bonds with an interest rate of 4.00%
Interest payments will be on semi-annual basis. Investors who are interested in the subscription, please contact Krungthai Bank Public Company Limited and KASIKORNBANK Public Company Limited as the joint lead arrangers. STA’s bonds have received a credit rating of “A-/Stable” from TRIS Rating Co., Ltd. as of November 25, 2024. This rating reflects STA’s solid leadership position in the global natural rubber industry, the expertise and experience of its management team, and its competitive edge driven by strategic vertical integration. According to TRIS Rating, STA’s financial performance for the first nine months of 2024 exceeded 80% of its full-year forecast, driven by strong demand from tire manufacturers. STA reported operating revenue of THB 81.3 billion and EBITDA of THB 5.3 billion. TRIS expects STA to surpass its annual projections, estimating EBITDA to reach approximately THB 7 billion. This strong performance underscores STA’s resilience and ability to capitalize on market opportunities, reinforcing its position as a global industry leader.
Sri Trang Agro-Industry Public Company Limited (STA) operates a fully integrated natural rubber business across multiple countries, encompassing the entire supply chain. The company’s operations span upstream rubber plantations in Thailand, midstream production and distribution of natural rubber products such as Technically Specified Rubber (TSR), Ribbed Smoked Sheets (RSS), and Concentrated Latex (LTX), and downstream manufacturing of rubber gloves and finished goods like high-pressure hydraulic hoses.
STA maintains a strong financial foundation, supported by a high credit rating that enables access to low-cost funding. The company’s significant financial growth is evident in its Q3 2024 performance, with sales and service revenue of THB 31.62 billion, reflecting a 22.5% increase from the previous quarter and an 87.3% increase year-over-year, alongside a net profit of THB 517.3 million. For the first nine months of 2024, STA reported a net profit of THB 816.0 million, driven by higher rubber prices and increased sales volumes, including premium-priced rubber compliant with the EU Deforestation-Free Regulation (EUDR). Mr. Veerasith Sinchareonkul, Chief Executive Officer of STA, stated: "We believe this STA bond issuance will be well-received by investors. Our recent roadshows have generated strong interest from institutional investors, thanks to the opportunity for consistent long-term returns. Our robust financial performance and the upward trend in global rubber prices further reinforce confidence in STA’s strong growth potential. Furthermore, STA has an impeccable record of meeting its debt obligations, with timely principal and interest payments on all previous bond issuances. We are confident that STA bonds will remain an attractive option, offering a range of choices to suit investors' preferences."
As part of STA’s commitment to sustainability and governance, STA has received an 'AAA' rating in the 2024 SET ESG Ratings under the Agro & Food Industry category." The company received an “AAA” rating in the 2024 SET ESG Ratings under the Agro & Food Industry category, marking its second consecutive year at the highest level and its 10th year as a sustainable stock. STA was also honored with the “Anti-Corruption Awards 2024” and continues to maintain its membership in the Thai Private Sector Collective Action Against Corruption (CAC).
Investors who are interested in STA bonds can subscribe with a minimum subscription of THB 100,000 and multiples of THB 100,000. Further information is available at www.sec.or.th, or through the following joint lead arrangers:
- Krungthai Bank Public Company Limited: Call 0-2111-1111 or subscribe via the Krungthai NEXT App for individual investors.
- KASIKORNBANK Public Company Limited: Call 02-888-8888, press 869, or subscribe via the K-My Invest platform at www.kasikornbank.com/kmyinvest (including Kasikorn Securities Public Company Limited as a sales agent for KASIKORNBANK).