WHA Group Successfully Placed Baht 4,000 Million Bond with Nearly Quadruple Oversubscription, Reflecting Solid Investors' Confidence

Friday 23 April 2021 09:42
WHA Corporation Public Company Limited (WHA Group) has received significant demand to bond issuance No.2/2021 with total offerings of Baht 4,000 million and nearly 4-time oversubscription. This reflects solid Investor confidence in the Company's strong fundamentals, robust financials and definite business expansion plans.
WHA Group Successfully Placed Baht 4,000 Million Bond with Nearly Quadruple Oversubscription, Reflecting Solid Investors' Confidence

Ms. Jareeporn Jarukornsakul, Chairman and Group CEO, is confident that the Company will continue to grow. The conglomerate's Logistics Business will increase value-added services through new technologies, especially in the E-Commerce sector, healthcare sector and other sectors which are experiencing a new wave of growth; whilst Industrial Estates Business will accelerate construction work at WHA Industrial Zone Nghe An for the additional phases after receiving overwhelming demand from foreign investors. For Utilities Business, The Company will leverage its expertise to offer value-added water solutions; whereas for Power Business, the Company will continue to develop renewable energy solutions, in particular solar rooftop and progressive initiatives involving new technologies. Meanwhile, WHA's Digital Business will install FTTx covering additional areas, whilst 5G opportunities will be further progressed inside WHA industrial estates. Furthermore, the asset monetization to WHA Premium Growth Freehold & Leasehold Real Estate Investment Trust ("WHART") will be in Q4 2021.

Ms. Jareeporn Jarukornsakul, Chairman and Group CEO of WHA Corporation Public Company (WHA Group), reveals that the Company bond issuance No. 2/2021 totaling Baht 4,000 million, offering during 19 -21 April 2021 via 3 underwriters, namely Kasikorn Bank, Siam Commercial Bank and UOB Bank, has received strong demand of Institutional Investors and HNWs'. There are 3 tranches of bond: the first with 2-year term matured in 2023 amounting Baht 1,000 million; the second with 3-year term matured in 2024 amounting Baht 2,000 million; and the third with 5-year term matured in 2026 amounting Baht 1,000 million. The fixed interest rates for 3 bond tranches are 2.30%, 2.73% and 3.50%, respectively. The successful bond issuance also reflects Investors' confidence in WHA Group's robust business expansion plans, committed management, strong fundamentals, solid financial position, demonstrated financial discipline and efficient financial management.

With the proceeds raised from the issuance, the Company shall repay existing debt, and/or utilize for working capital to support its business operations.

Tris Rating Co. has assigned WHA Group's bond No. 2/2021 "A-" rating, as of 18 March 2021. This rating reflects strong competitive position and track record in Logistics Business and Industrial Estates Business. Besides, the rating also incorporate a sizable base of recurring income from rental properties, Utilities Business, and Power Business as well as a financial flexibility from the ability to monetize its assets to real estate investment trusts (REIT).

Ms. Jareeporn said "For 2021, The Company will continue to grow in all 4 business hubs, especially Logistics Business which strives to capture high-growth industries' demand and increase value-added services through new technologies, especially in the E-Commerce sector, healthcare sector and other sectors which are experiencing a new wave of growth. For Industrial Estates Business, the Company shall accelerate its expansion in Thailand and Vietnam supporting high demand foreseeable after the effective COVID-19 prevention.

Additionally, the Company shall accelerate construction work at WHA Industrial Zone Nghe An for the additional Phases 2 and 3 after receiving overwhelming demand from foreign investors. Furthermore, the Company also continues to expand the second industrial estate in Thanh Hua Province, Vietnam. In Utilities Business, WHA Group shall leverage its expertise to offer value-added water products such as wastewater reclamation and demineralized water to customers both inside and outside industrial estates; while in Power Business, the Company shall enlarge its customer portfolio with the development of renewable energy solutions, in particular solar rooftop projects and progress initiatives involving new technologies including the testing of peer-to-peer energy trading system with a view to implement as soon as satisfactory. Coupled with this, Digital Platform Business will install FTTx in the remaining industrial estates where it is not yet in place to enhance digital connectivity. Strong customer development activities will be implemented in Data Center business. 5G opportunities will be further progressed inside WHA industrial estates.

Moreover, the Company will monetize assets to WHA Premium Growth Freehold & Leasehold Real Estate Investment Trust (WHART) in Q4 2021, as planned.

As an ongoing measurable benchmark according to its slogan, WHA Group shall continue to strive, across all businesses, to be "Your Ultimate Solution Partner" by creating new value-added products and services via innovative solutions and business platforms, combined with an infrastructure base. The Company also expects digital transformation to continually emerge.

Source: Media Planner Consultant