PTT Global Chemical Public Company Limited (SET: PTTGC), Thailand’s largest petrochemical producer, has launched a US$1.1 billion perpetual bond to shore up its balance sheet.
According to a note from Morgan Stanley, the issuance, carrying a coupon of 6.5% to 7.125%, aims to refinance existing Thai Baht loans with interest rates of 4% to 4.5%, and the repurchase of US$142 million of dollar-denominated debt with an implied yield near 5%, could increase PTTGC’s funding costs for PTTGC’s US$0.96bn refinanced debt of around 80-100bps.
While the brokerage classifies perpetual bonds as debt in its financial models, credit agencies recognize half of such instruments as equity—boosting PTTGC’s capital structure and helping mitigate the risk of a credit rating downgrade.
The investment bank notes that PTTGC’s focus on reducing leverage, halving investment outlays, and actively refinancing should position the company advantageously as the chemicals sector rebounds from its cyclical lows. Currently, PTTGC’s net debt-to-equity sits at 0.7x, and net debt-to-EBITDA at around 6.3x.
Looking ahead, Morgan Stanley highlights that an expected rise in sales volumes could provide further momentum for the company’s shares. The brokerage projects that PTTGC’s price-to-book ratio—now at just 0.5x 2026 estimated book value—could trend closer to 1.3x of tangible book value.
