SET Notification

Notification of the progress of liability management of US$ denominated debt which issued and entirely offered to offshore investors of PTT Exploration and Production Public Company Limited’s group

11 December 2019

           
PTTEP 13061/00-12815/2019                                                                                    

Investor Relations                                                                           
Tel. +66(0) 2537 4868, +66(0) 2537 5843

11 December 2019

President
The Stock Exchange of Thailand
93 Ratchadaphisek Road, Dindaeng
Bangkok 10400

Dear Sir,
Subject:           Notification of the progress of liability management of US$ denominated debt which issued and entirely offered to offshore investors of PTT Exploration and Production Public Company Limited’s group
Reference:        Letter No. PTTEP 13061/00-12215/2019, dated 15 November 2019
 
PTT Exploration and Production Public Company Limited (“PTTEP” or the “Company”) would like to inform the progress of liability management exercise of its group companies, as follows:
 
1. US$ denominated Subordinated Perpetual Securities which were issued and offered by PTTEP Treasury Center Company Limited 
According to the announcement dated 15 November 2019, PTTEP plans to repurchase the US$ denominated notes issued by PTTEP Treasury Center Company Limited (“PTTEP TC”), a subsidiary of PTTEP, and such notes are guaranteed by PTTEP. The notes are US$ denominated subordinated perpetual securities having an aggregate outstanding amount of US$ 500 million (“Subordinated Notes”), were entirely offered to offshore investors (“Existing Notes”). The Existing Notes have been repurchased in an amount of approximately US$ 469.15 million (equivalent to 93.83 percent of the total principal amount which was issued in this tranche). After completion of the repurchase of the Subordinated Notes, PTTEP TC plans to exercise the right to redeem all of the remaining Subordinated Notes at the redemption price in accordance with the conditions and methods prescribed for the Subordinated Notes. 

Furthermore, on 6 December 2019, PTTEP TC also issued and offered senior notes in an aggregate principal amount of US$ 650 million with the fixed interest rate of 3.903% per annum, the maturity date of such notes is 6 December 2059 (the “New Notes”) which are issued under up to US$ 3 billion Global Medium Term Note Program (the “Program”) established by PTTEP and PTTEP TC. The net proceeds from the issuance of the New Notes will be used to lend-on to entities within PTTEP group for the liquidity management.
 
2. The Senior Notes due 2021 issued and offered by PTTEP Canada International Finance Limited 
PTTEP Group will arrange for the offer to partially repurchase US$ denominated notes from  offshore investors, in which the notes were issued by PTTEP Canada International Finance Limited (“PTTEP CIF”), a subsidiary of PTTEP which is incorporated in Canada, the aforementioned notes are guaranteed by PTTEP. In this regard, the notes are senior notes with an interest rate of 5.692% per annum and maturing in 2021, and the notes have the aggregate principal amount of US$ 700 million and was entirely offered to offshore investors (“Senior Notes due 2021”) and listed on Singapore Exchange Securities Trading Limited (SGX-ST). After the completion of the repurchase of the Senior Notes due 2021, PTTEP CIF may exercise the right to redeem all of the remaining Senior Notes due 2021 prior to the maturity.

In addition, PTTEP TC plans to issue and offer new US$ denominated notes entirely to offshore investors under the Program. In this regard, PTTEP will further inform the progress on the repurchase and the fund raising plan.  
 
 
Please be informed accordingly.
 
Sincerely yours,
 
Phongsthorn Thavisin
 
Phongsthorn Thavisin
President and Chief Executive Officer
 
These materials are not an offer of securities for sale into the United States or Thailand. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States. No offering of any securities will be made to any person in Thailand. There will be no redemption of any notes issued and offered in Thailand by the PTTEP group.