Italian-Thai Development Public Company Limited (SET: ITD) announced through the Stock Exchange of Thailand that it has received bondholder approval to extend debt repayment by three years, while also raising interest rates and revising the principal repayment conditions. The company noted in its comment via its Facebook page that this move will enhance liquidity, allowing the company to continue moving forward with major construction projects.
The bondholder meeting was conducted electronically (E-Meeting), postponed from January 16 due to a lack of quorum. The meeting considered five bond series: ITD242A, ITD24DA, ITD24DB, ITD254A, and ITD266A.
In agenda item 2, bondholders resolved to “approve” amendments to the terms and restructuring as proposed by the company. The three main points are as follows:
1) Extension of principal repayment: The redemption period will be extended by three years.
2) Gradual principal repayment: To foster confidence, ITD will make early partial repayments at a rate of 10% per year.
3) Increased interest rate: Interest rates for the bonds will be raised by 0.25%–0.50% per year (depending on the series) as compensation for the extension.
This resolution represents a turning point, boosting ITD’s short- to medium-term liquidity by reducing the burden of large lump-sum repayments. The increased flexibility allows the company to utilize cash flows for ongoing construction projects (backlog), as planned.
For bondholders, although the principal repayment will take longer, they will receive higher interest as compensation, along with yearly principal repayment guarantees. ITD is preparing to issue new bonds with revised terms, to be delivered to the bondholders accordingly.
