GULF Secures $1 Billion in Bond Offering Amid Global Market Volatility

GULF Development Public Company Limited (GULF) has successfully completed a bond offering worth 35 billion baht (approximately $1 billion), receiving a strong response from institutional and high-net-worth investors. The total subscriptions reached 49.5 billion baht (about $1.4 billion), indicating an oversubscription rate of approximately 1.4 times the offered amount, as reported by Prachachat.

Yupapin Wangwiwat, Chief Financial Officer of GULF, noted that this bond issuance was particularly challenging due to ongoing global market volatility, including geopolitical tensions and economic uncertainties. Despite these challenges, investor confidence in GULF's potential remained strong, as evidenced by the oversubscription.

The bonds issued are non-subordinated, unsecured, and are divided into four tranches with a fixed average interest rate of 2.36% per annum and an average maturity of 6.4 years. The first tranche was offered exclusively to institutional investors, while the remaining tranches were available to both institutional and high-net-worth investors.

“This bond issuance reflects strong investor confidence in our company's growth potential, even in a challenging global market.”Yupapin Wangwiwat, CFO of GULF

According to GULF, the proceeds from this bond issuance will be allocated to repay maturing debt and loans from financial institutions, which is expected to reduce interest expenses by approximately 200 to 250 million baht ($5.7 to $7.1 million) annually. The company also plans to use the remaining funds to support future investment expansions, particularly in renewable energy projects both domestically and internationally, as well as in infrastructure and AI solutions.

This bond offering comes at a time when the global financial landscape is marked by significant volatility due to various factors, including the ongoing war in Ukraine and uncertainties in the global economy.