5 September 2022
Bangkok Expressway and Metro Public Company Limited (“BEM”) successfully offers THB senior and unsecured sustainability debentures to Institutional and/or High Net Worth Investors with total issuance included greenshoe of THB 4,500 million, or 2.6 times oversubscription from initial target issue size of THB 3,000 million.
The issuance is the second sustainability debentures issued by BEM. The proceed will be used to re-finance debt and/or equity investment portion in its MRT Blue Line Project, which is a public transport system that runs on clean energy, reduces greenhouse gas and Carbon Dioxide (CO2) emissions, and helps people to access transportation infrastructure with convenience, reduces environmental impact as well as solving traffic problems on the road amid the pollution crisis and climate change that affect to the world's ecosystems.
The debentures received rating at “A-” from Tris Rating co., Ltd on 25 August 2022 reflecting the financial strength and solid of the company’s business. BEM’s debenture is divided into 4 series with semi-annual coupon payment; 3-year debenture with fixed coupon of 2.76% p.a., valued THB 1,000 million, 5-year debenture with fixed coupon of 3.33% p.a., valued THB 1,500 million, 10-year debenture with fixed coupon of 4.01% p.a., valued THB 1,000 million and 12-year debenture with fixed coupon of 4.15% p.a., valued THB 1,000 million, totally THB 4,500 million. Bank of Ayudhya Public Company Limited and Government Savings Bank are appointed as the Joint Lead Underwriter for this offering.
[Dr. Sombat Kitjalaksana, Managing Director], Bangkok Expressway and Metro Public Company Limited (“BEM”), said “BEM continues achieving strong demand from various group of investors including life insurance companies, asset management companies, banks, and cooperatives, reflected the investors’ confidence on BEM’s solid business profile and strong financial position amidst the market volatility, inflation, and risk of economic recession, and also proven investors’ intention in supporting projects with environmental and social benefits. These sustainability debentures have echoed and reiterated on BEM’s mission to create the “Path to Happiness for Better Travelling Mode”.
Mr. Seiichiro Akita, Krungsri President and Chief Executive Officer, said “Krungsri aims to create the ongoing growth of ESG Finance to achieve the goal of being a trusted partner to customers. As a Joint Lead Underwriter, we feel truly honored to collaborate with BEM again for sustainability debentures issuance. In addition, the company has lengthened debenture term to 12-year to accommodate investors’ demand in supporting sustainability debentures issuance. The 12-year debenture received great interest and sizable demand, reflecting investors’ confidence of BEM’s underlying credit and strengths in terms of performance as well as financial standing. Krungsri is continually supportive of BEM’s mission in driving the business as a service provider of the country’s vital transportation system towards long-term sustainability.”
Mr. Vitai Ratanakorn, President & CEO of Government Savings Bank, said, “The Government Savings Bank is very pleased to be a Joint Lead Underwriter in the issuance and offering of Bangkok Expressway and Metro Public Company Limited or BEM sustainability debentures once again. This is a project that is beneficial to society and environment. The proceeds of sustainability debentures this time will be used to re-finance debt and/or equity investment portion in the MRT Blue Line Project which considered as a clean transportation project and affordable infrastructure that everyone can access. It encourages bond issuers and investors to value the importance of social and environmental change. It is also consistent with the operation of the Government Savings Bank in accordance with the ESG concept that takes into account environmental factors, positive impact on society and operate with good governance, emphasizing social mission integration in depth on key processes of the bank to reduce inequality social assistance and environment can lead the organization and society towards sustainable development according to the current world trends.