CPFTH, a subsidiary of CPF, plan to issue and offer a debenture to institutional & HNW investors within 20 August 2020

Stocks and Financial Services Press Releases Friday July 10, 2020 11:57
Bangkok--10 Jul--CPF

CPF (Thailand) Public Company Limited (CPFTH), a subsidiary of Charoen Pokphand Foods Public Company Limited (CPF) holding 99.99% stake in, has filed the Registration Statement with the Office of the Securities and Exchange Commission (SEC) in order to issue and offer unsubordinated and unsecured debentures with debenture holder’s representative to institutional investors and/or high net worth investors. The offering comprises   5 series of debentures with tenors of 4 years and 6 months, 7 years, 10 years,12 years, and 15 years, all of which have been assigned a credit rating of A+ from TRIS Rating Co., Ltd. On 10 June, 2020. In this regard, CPFTH has appointed Krungthai Bank, KASIKORNBANK, Siam Commercial Bank, Government Savings Bank, CIMBThai Bank, TMB Bank, and Phatra Securities as the joint lead arrangers for this batch of debentures   which are expected to be offered within 20 August 2020.

Mr. Paisan Chirakitcharern, Chief Financial Officer of CPF, disclosed that CPFTH is a subsidiary of CPF that operating integrated agro-industrial and food businesses in Thailand. CPFTH’s business encompasses integrated operations in Thailand relating to livestock comprising swine, broiler, layer, and duck. CPFTH’s operation covers 3 core livestock business lines, namely (1) Feed, i.e. production and sale of animal feed; (2) Farm-Processing, i.e. breeding, commercial farming, and primary meat processing; and (3) Food, i.e. production of processed semi-cooked and fully-cooked meat and production of ready-to-eat meals, including retail and food outlets with renown brands such as   CP Fresh Mart, Five Stars, Star Coffee, and CP Kitchen, Korean BBQ restaurant chain “DakGalbi” and seafood and International-food buffet restaurant chain “CP Hilai Harbour”.

In 2019, CPFTH’s operating income was over 144 billion baht (accounting for 27% of CPF’s) and its EBITDA stood   at 7.2 billion baht (accounting for 15% of CPF’s).In 1Q/2020, due to the higher prices of   livestock products compare with previous year and the lower average prices of feed raw materials were conducive factors leading to a good performance. CPFTH’s sales revenue increased 7% YOY while its gross profit margin grew to 13% in 1Q/2020 compared with 9% in 1Q/2019.

In this regard, the joint lead arrangers are positive that all 5 series of debentures offered will be well received, particularly by investors are looking to invest in debenture of companies that are stable, reliable in businesses and opportunity to grow. Furthermore, CPFTH underwent minor impact from the economic recession following the outbreak of   the novel corona virus or   COVID-19 because its products are daily necessities. CPFTH’s strength is   also reflected in the credit rating of A+, reinforcing CPFTH’s standing as a prominent subsidiary of   CPF in Thailand.

Latest Press Release

Fitch Revises Outlook on Bank of Ayudhya to Negative; Affirms Ratings

Fitch Ratings has revised the Outlook on Bank of Ayudhya Public Company Limited's (BAY) Long-Term Issuer Default Rating (IDR) and National Long-Term Rating to Negative from Stable. At the same time, Fitch has affirmed BAY's Long-Term IDR of 'BBB+' and...

Fitch Revises Outlook on SMTB Thai to Negative; Affirms Ratings

Fitch Ratings has revised the rating Outlook on Sumitomo Mitsui Trust Bank (Thai) Public Company Limited (SMTBT) to Negative from Stable. At the same time, Fitch has affirmed the bank's National Long-Term Rating of 'AAA(tha)', and its National Short-Term...

Fitch Revises Outlook on EASY BUY to Negative; Affirms Ratings

Fitch Ratings has revised the Outlook on EASY BUY Public Company Limited (EB) to Negative from Stable. At the same time, Fitch has affirmed EB's National Long-Term Rating of 'AA(tha)' and National Short-Term Rating of 'F1+(tha)'. The revised Outlook...

Photo Release: EXIM Thailand Joins Hands with GJPCT to Promote and Enhance Thai Gems and Jewelry Entrepreneurs’ Competitiveness in the Global Market

Mr. Pisit Serewiwattana (right), President of Export-Import Bank of Thailand (EXIM Thailand), and Mr. Somchai Phornchindarak (left), President of the Gems, Jewelry and Precious Metal Confederation of Thailand (GJPCT), recently signed a Memorandum of...

Banpu reports overall stable performance in the first half of 2020 Gearing investment towards instant cash-flow generating businesses

Banpu Public Company Limited (BANPU), a leading integrated energy solutions company in Asia Pacific, achieved stable results for the first half of 2020 through its key focus on increasing and maintaining cash flow by the acceleration of closing of...

Related Topics