PTT PCL, Thailand's top energy firm, said on July 14 it might sell up to 40 billion baht ($1.2 billion) worth of bonds, mostly in foreign markets, to refinance debt later this year. The move would allow Thailand's largest listed firm to minimise risks in the face of volatile markets, rising interest rates and inflation, chief financial officer Pichai Chunhavajira told Reuters in an interview.
"What I have to do is to make sure we have enough liquidity to finance our expansion. We have to refinance our debt to be longer term and in line with our investment plans," he said. The bonds would be issued in several tranches, he said, adding that other details would depend on market conditions.
PTT's debt now stands at 187 billion baht, the largest share of the 215 billion baht in debt held by the PTT group of companies. Some 73 percent is denominated in Thai baht, 24 percent in dollars and the remaining 3 percent in yen. The average financing cost of the group debt is about 5.5 percent, according to company data.
PTT, Thailand's largest listed firm with a market value of $25 billion, and its 65.72-percent owned subsidiary, PTTEP planned to invest nearly $20 billion over the next 5-6 years, Pichai said. About $11 billion would be spent by PTT Exploration and Production (PTTEP), PTT's flagship in the exploration and production businesses, to increase reserves and capacity to meet rising domestic demand, he said.
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