PTTEP digital bond via Pao Tang sold out with record-breaking time; 6 billion Baht in 8 minutes 12 seconds
3 Nov 2021
PTTEP digital bond, Asia’s historic first offering of a corporate bond via wallet, was overwhelmingly successful as total issuance of 6 billion Baht bond was sold out in 8 minutes and 12 seconds. This underscores successful collaboration between PTTEP and Krungthai Bank in offering the corporate bond on the Thailand Open Digital Platform, Pao Tang application. It democratizes investment in corporate bonds and makes subscription and trading easier, instant and available 24 hours a day.
Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) revealed that the digital bond attracted a lot of interest from the Thai investors. After the offering started on 2 November 2021 and the initial issue size of 5 billion Baht was fully subscribed, PTTEP decided to exercise greenshoe option and issued an additional 1 billion Baht, bringing bonds issuance to 6 billion Baht in total. For this offering, PTTEP has cooperated with Krungthai Bank to offer the bond via Pao Tang application, making it the first time in Asia that a corporate bond is offered via a digital wallet.
“I would like to express our gratitude to all investors who trust PTTEP, a Thai energy company with robust growth. The proceeds from the bond issuance will be used as working capital for future growth of the business. During the year 2021, PTTEP’s operating results has improved mainly from a 20% increase of average petroleum sales volume as a result of overseas projects namely the acquisition of Oman’s Block 61 and the first gas production from Malaysia Block H. This reflects the achievements of our business strategy implementation. Furthermore, investing in high potential petroleum fields and the continuous successes of petroleum discoveries in Malaysia are one of major factors to drive PTTEP’s growth in the long term,” Montri said.
Payong Srivanich, President and CEO of Krungthai Bank, said that the successful offering of PTTEP digital bond reflects the people’s trust in PTTEP business and the efficiency of Pao Tang application, which is developed by Infinitas by Krungthai to be a Thailand open digital platform. The application aims to make activities relevant to all aspects of life simpler, safer, more convenient, and accessible anytime anywhere. The activities include payments under government schemes via G-Wallet and activities relating to healthcare, education, savings and investment. With minimum subscription of only 1,000 Baht, the PTTEP digital bond, which was fully subscribed within 8 minutes and 12 seconds, attracts 8,363 investors from all over the country: 40.9% of which from Bangkok and 59.1% from other provinces, with 11.61% from the Northeast alone. The investors’ age ranges between 20-89; 7.8% of which are first jobbers (aged between 20-29) and 25% are 60 years or older. The investor demographics show that the new offering channel provides equal and inclusive subscription opportunities to all groups of people. Successful subscribers can check their subscription under the “History” menu in the digital bond wallet. The bond will be shown in the wallet on 5 November 2021, which is the bond’s issue date. Investors who missed the opportunity to subscribe in the primary market can trade the bond in the secondary market via Pao Tang application 24 hours a day from 5 November onwards.
“In this PTTEP digital bond offering, we make use and build upon our digital infrastructure to expand the line of products and services. The offering also addresses the Sustainable Development Goals (SDGs) in several ways: we leverage innovations to enhance the efficiency and uplift the Thai capital market by continuously offering services that promote economic growth. The scripless nature of the offering also helps cut paper use and allows people to subscribe without having to travel to a bank branch. Offering bonds on Pao Tang, which has over 33 million users and most Thais are already familiar with, allows all groups of people to have equal access to bond investment, thus reducing inequality. Furthermore, the system is transparent, safe and verifiable. Krungthai is now ready to partner with other companies or organizations to develop products and services that better meet the needs of customers to empower a better and sustainable life for all Thais,” Payong said.
PTTEP digital bond is a long-term name-registered, unsubordinated, and unsecured bond with a bondholders’ representative. The bond, due in 2026, has the tenor of 5 years and bears a step-up interest rate with the minimum of 2.00% per annum and the maximum of 2.75% per annum, averaging to 2.25% per annum. The interest will be paid every 6 months. The minimum subscription is 1,000 Baht and investors can subscribe with subsequent multiples of 1,000 Baht and the maximum subscription is 10 million Baht per investor. The bond was assigned “AAA”, the highest possible credit rating for domestic bonds, by TRIS Rating on 14 September 2021, reflecting the company’s robustness and financial stability.
For more information, please contact
Media Management Section, PTT Exploration and Production Public Company Limited
Marketing Strategy Team, Krungthai Bank Public Company Limited
The information, statements, forecasts and projections contained herein reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance is given that these future events will occur, or that the Company’s future assumptions are correct. Actual results may differ materially from those projected.