DUSIT prepares for strong return of business in the new normal by offering perpetual debentures for financial institutions and high-net-worth investors
Available to buy from 1 – 10 August 2022, DUSIT’s Hybrid
Perpetual Debenture is set to offer a steady, predictable source
of income for investors, with a coupon rate of 8% per annum.
Bangkok, Thailand, 22 July 2022 – Dusit Thailand Public Company Limited (DUSIT), one of Thailand’s leading hotel and property development companies, is strengthening its financial position for the post-pandemic return of travel and tourism business by offering perpetual debentures for financial institutions and high-net-worth individuals.
Available to buy from 1 – 10 August 2022 and priced at THB 100,000 per debenture, The Hybrid Perpetual Debenture is a subordinated perpetual debenture. The coupon rate will be calculated as follows:
- Years 1 – 5: 8% per annum.
- Years 6 – 10: Thailand 5 Years Government Bond yield plus 5.9% per annum.
- Years 11 – 30: Thailand 5 Years Government Bond yield plus 6.2% per annum.
- Years 31 – 50: Thailand 5 Years Government Bond yield plus 6.8% per annum.
- Year 51 onwards: Thailand 5 Years Government Bond yield plus 8% per annum.
(The Thailand 5 Years Government Bond yield will be adjusted every 5 years).
Amidst the impact of the global pandemic on overall business, DUSIT has an investment rating of BBB- with a ‘negative’ outlook. The Hybrid Perpetual Debenture, however, has a BB investment rating, reflecting the steady recovery of business expected as the world reopens to international travel and tourism.
The debenture will be sold through securities companies, including Maybank Securities, KTBST Securities, AIRA Capital, Finansia Syrus Securities, and Trinity Securities.
“With travel restrictions easing worldwide and people eager for new experiences following two years of pandemic-related lockdowns, the global hospitality industry is on course for steady recovery, and we are confident that business will bounce back in our various destinations,” said Ms Suphajee Suthumpun, Group CEO, DUSIT. “Issuing the Hybrid Perpetual Debentures will strengthen our position to continue our strategic vision for balance, expansion, and diversification, and we expect a strong and positive response from the investment community when the debentures are issued in August.”
The conditions are as follows: 1. The perpetual debentures have no maturity date, and the debenture holder has no right to early redemption only the issuer's right to early redemption. 2. Subordinated debt has claims after senior debt but before common stock in the event of default. 3. The issuer has sole right to unconditional interest deferral. If the deferment of interest payments on the debentures occurs, the Issuers cannot declare or pay dividends to shareholders. 4. Interest rates are adjusted every 5 years based on the Thailand 5 Years Government Bond yield.
Ms Suthumpun said that the debenture’s attractive interest rates are not the only attraction for investors.
“With more than 70 years of experience managing luxurious properties in key destinations worldwide, Dusit has firmly established itself as one of Thailand’s leading hospitality brands and a name people can trust,” said Ms Suthumpun. ‘While the past two years have certainly been challenging for our industry, DUSIT’s agile and innovative response serves as a strong indicator of how resilient our company is. From creating and rolling out hyper-targeted marketing campaigns to attract available and emerging markets, to introducing new services and experiences that cater to new trends and consumer expectations, we have made every effort to enhance our competitive advantage and pave the way for sustainable success in the new normal. Investing in Dusit is investing in a bright future. And we look forward to delivering enduring value for all stakeholders.”
For more information about DUSIT’s Hybrid Perpetual Debenture 1/2022, please visit www.sec.or.th or contact the following securities companies – Maybank Securities: 02-658-5050 / KTBST Securities: 02-351-1801 / AIRA Capital: 02-080-2888 / Finansia Syrus Securities: 02-658-9500 / Trinity Securities: 0-2343-9500.