STA is ready to offer bonds with maturities of 3 to 10 years with an interest rate of 3.40-4.00%. This represents an excellent opportunity for retail investors to access A- rated bonds with a 'stable' outlook. Subscriptions are open through Krungthai Bank and KASIKORNBANK from January 31 and February 3-4, 2025.
This represents an excellent opportunity for retail investors to access A- rated bonds with a 'stable' outlook. Subscriptions are open through Krungthai Bank and KASIKORNBANK from January 31 and February 3-4, 2025.
STA announces readiness to offer bonds with maturities ranging from 3 to 10 years, offering an annual interest rate of 3.40-4.00%, with interest payments scheduled semi-annually. The subscription period is between January 31 and February 3-4, 2025. This is an opportunity for retail investors to access bonds with an “A-” credit rating and a “Stable” outlook. The diverse bond maturities provide flexibility for investors to lock in their investment period while enjoying consistent and attractive returns. Backed by STA's strength as the world’s largest fully integrated natural rubber business and Thailand’s leading rubber glove manufacturer, coupled with its outstanding financial performance, STA bonds stand out as a compelling investment choice.
Mr. Veerasith Sinchareonkul, Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited (STA), one of the world’s largest fully integrated natural rubber producers and Thailand’s leading rubber glove manufacturer, announced that the company is ready to offer four tranches of unsubordinated and unsecured bonds with bondholder representatives to the general public. The offerings include:
- Tranche 1: 3-year bonds with an interest rate of 3.40%
- Tranche 2: 5-year bonds with an interest rate of 3.70%
- Tranche 3: 8-year bonds with an interest rate of 3.85%
- Tranche 4: 10-year bonds with an interest rate of 4.00%
Interest payments will be on semi-annual basis, and the subscription period is between January 31 and February 3-4, 2025, through all branches of Krungthai Bank Public Company Limited and KASIKORNBANK Public Company Limited.
"We are confident that this bond offering represents an opportunity for retail investors to access the company’s bonds. With bond maturity ranging from 3 to 10 years, investors can choose a term that best suits their financial planning and investment needs while enjoying attractive returns. STA’s strong position as the world’s largest fully integrated natural rubber producer, coupled with the upward trend in global rubber prices, reinforces investor confidence. These factors make STA bonds a compelling and reliable investment choice that we believe will be well-received by the market," said the Chief Executive Officer of Sri Trang Agro-Industry Public Company Limited.
In the third quarter of 2024, the price of rubber blocks in Singapore's SICOM futures market surged by 30% compared to the same period last year. Similarly, the price of smoked rubber sheets in Thailand rose significantly, reaching nearly 100 THB per kilogram. Although prices have since softened slightly, they remain stable at around 80 THB per kilogram, a notable increase from the average of just 40 THB per kilogram seen 2-3 years ago.
Sri Trang Agro-Industry Public Company Limited (STA) operates a fully integrated natural rubber business across multiple countries, encompassing the entire supply chain. This includes upstream operations such as rubber plantation management in Thailand, midstream operations involving the production and distribution of natural rubber products like block rubber (TSR), ribbed smoked sheets (RSS), and concentrated latex, and downstream operations including the manufacturing and distribution of rubber gloves and finished products such as high-pressure hydraulic hoses.
STA boasts a strong financial position and significant business growth. In the third quarter of 2024, the company reported revenue from sales and services of 31,618.5 million THB, representing a 22.5% increase from the previous quarter and an 87.3% growth compared to the same period last year. The company also achieved a net profit of 517.3 million THB for the quarter. For the first nine months of 2024, STA recorded a net profit of 816.0 million THB, driven by higher rubber prices and sales volumes, as well as the premium value derived from selling EUDR (EU Deforestation-free Regulation) compliant rubber, which commands a higher price than standard rubber products.
Sri Trang Agro-Industry Public Company Limited (STA) remains steadfast in its commitment to conducting business under the principles of sustainability and corporate governance. The company has achieved the “AAA” rating in the 2024 SET ESG Ratings, under the Agro & Food Industry category, for the second consecutive year. This milestone marks STA’s 10th year as a recognized sustainable stock by the Stock Exchange of Thailand, reflecting its dedication to environmental, social, and governance (ESG) standards.
Additionally, STA was honored with the “Anti-Corruption Awards 2024”, recognizing its efforts to promote good governance practices. The company has also been a longstanding member of the Thai Private Sector Collective Action Against Corruption (CAC), further underlining its unwavering commitment to transparency, ethical business practices, and corporate responsibility.
The joint leader arrangers emphasized that STA’s business strength, investment-grade credit rating, and attractive returns are key factors supporting the appeal of STA bonds. Additionally, STA has a flawless record of timely principal and interest payments on all previous bond issuances, further enhancing investor confidence.
The financial institutions have also ensured comprehensive preparation to offer the bonds through multiple channels, providing maximum convenience to interested investors.
Investment Details and Caution Against Scams
General investors can subscribe to STA bonds with a minimum subscription of THB 100,000 and multiples of THB 100,000. Investors are advised to exercise caution against fraudulent schemes, particularly those on social media platforms such as Facebook or Line, which may promise unrealistically high returns.
For more information, please visit www.sec.or.th or contact the joint leader arrangers:
- Krungthai Bank Public Company Limited: Call 0-2111-1111 or subscribe via the Krungthai NEXT App for individual retail investors.
- KASIKORNBANK Public Company Limited: Call 02-888-8888, press 869, or subscribe via the K-My Invest platform (www.kasikornbank.com/kmyinvest) for individual Thai retail investors, including services through Kasikorn Securities Public Company Limited.