BTS Group sets final coupon of 2.95% – 4.70% per annum for its 4 tranches of ‘Sustainability-Linked Bonds (SLB)’. Semi-annual interest payment with credit rating of “A”. The first-ever in Thailand SLB is to be offered to general public during 25 and 28-29 November 2022 with a minimum subscription of 100,000 baht.BTS Group appoints 5 leading financial institutions as joint lead arrangers for this offering.
BTS Group Holdings Public Company Limited or BTS Group announces the coupon rate of its sustainability-linked bonds (SLB) under the placement of Public Offering (PO) for the first time in Thailand. The offering consists of 4 tranches with the tenors ranging from approximately 2 years to 10 years, with coupon range between 2.95% – 4.70% per annum. The subscription period for the SLB is to take place during 25 and 28-29 November 2022 through 5 leading financial institutions.
Mr. Surayut Thaweekulwat, Chief Financial Officer, BTS Group Holdings Public Company Limited, the issuer of the first-ever in Thailand ‘Sustainability-Linked Bonds (SLB)’ to general public, revealed that the company had set coupon rate of its named unsubordinated unsecured with debenture holder representative Sustainability-Linked Bonds. The 4-tranches of the SLB consists of 1 year 11 months and 30 days with coupon rate of 2.95% per annum, 4 years 5 months and 29 days with coupon rate of 3.85% per annum, 7 years 5 months and 29 days with coupon rate of 4.35% per annum, and 9 years 11 month and 30 days with coupon rate of 4.70% per annum. Interest payment term will be on semi-annual basis. Investors can subscribe BTSG SLB through 5 leading financial institutions, including Bangkok Bank, Krung Thai Bank, Kasikorn bank, Siam Commercial Bank, and CIMB Thai Bank during 25 and 28-29 November 2022 with minimum subscription of 100,000 baht and a multiple of 100,000 baht. Every 100,000 baht investment has contributed to carbon reduction of equivalent to planting 7 trees.
The SLBs were rated “A” by TRIS Rating on September 19, 2022. TRIS ratings assigned rating base on the steady service income from its sky train operation, the sizable cash flow received from its 33.33% investment in BTS Rail Mass Transit Growth Infrastructure Fund (BTSGIF), and its entrenched position in the media business.
“BTS Group is ready to create new era of investment by offering ‘Sustainability-Linked Bonds (SLB) to general public for the first time in Thailand. Not only the return on investment, investors also have an opportunity to participate in ESG instrument along with the company. The company is confident that SLB will receive warm welcome from a general public similar to BTS Group’s previously successful offering SLB to high-net-worth and institutional investors.” Said Chief Financial Officer.
BTS Group has been committing to promote sustainability by setting up long-term strategy to cope with climate change (Climate Strategy) by maintaining Carbon Neutral status and by committing in raising its usage of electricity generated from renewable energy to at least 10% of total energy used for its operations. As a result, The company has been included into the Dow Jones Sustainability Indices (DJSI) for 4 consecutive years (2018-2021), selected as a member of the FTSE4Good Index Series for the year 2022 for the 6th consecutive year, and ranked first globally in the DJSI (DJSI Industry Leader) in Transportation and Transportation Infrastructure (TRA) Sector for 2 consecutive years (2020-2021). Recently, it was selected to be the first and only rail transportation company in the world to be certified as a Carbon Neutral Transportation Company from Thailand Greenhouse Gas Management Organization.
Thus, the Sustainability-Linked Bonds (SLB) are debentures that tie the issuer to certain conditions, depending on the achievement of the predetermined Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs). Such targets are required to be ambitious and material to the issuer as well as to have a positive impact on the environment and/or society. For BTS Group, there are 2 KPIs and SPTs that the company use as the reference for this SLB issuance: 1) Improvement in energy efficiency in its green line network (which is currently the main network); BTS Group has a target to reduce electricity consumption by 8% from business-as-usual operations within 9 years or by 2031, and 2) Production and/or procurement of Electricity consumption from renewable energy sources; the company has target to use electricity from renewable energy sources at least 10% each year of total electricity used in the operation of the green line network. Further details of KPIs and SPTs can be found in the registration statement and the draft prospectus (Filing).
If BTS Group fails to meet both predetermined sustainability goals on each evaluation date, BTS Group will has the sustainable obligation of an equivalent amount of 0.10% per annum of the offering value of the debentures, whereas if the company fails either of sustainability goals on each evaluation date, BTS Group will have the sustainable obligation of an equivalent amount of 0.05% per annum of the offering value of the debentures. The obligation is that the Company will be required to generate or procure Renewable Energy Credits (RECs) from agencies and/or organizations that are well-recognized nationally and/or internationally. Such obligation portrays the company’s commitment on sustainability and environmental issues.
Investors who are interested to subscribe may find more information and details in the prospectus published on SEC’s website (www.sec.or.th) or may contact the followings 5 financial institutions:
- Bangkok Bank Public Company Limited (except Micro Branches) Tel. 1333, or subscribe online via Bualuang mBanking application (https://www.bangkokbank.com/th-TH/Personal/Digital-Banking/Bualuang-mBanking/).
- Krung Thai Bank Public Company Limited Tel. 02-111-1111, or book online via Krungthai NEXT application or via Money Connect by Krungthai (https://moneyconnect.krungthai.com/)
- KASIKORNBANK Public Company Limited (Retail investors can subscribe via online channel (https://www.kasikornbank.com/kmyinvest), non-residents can subscribe at head office and branches) Tel. 02-888-8888 press 819, including KSecurities Public Company Limited, as a sales unit of KASIKORNBANK Public Company Limited, Tel. 02-796-0000 or 02-796-0011
- The Siam Commercial Bank Public Company Limited Tel. 02-777-6784, or book online through the SCB EASY application.
- CIMB Thai Bank Public Company Limited Tel. 02-626-7000, or book online through the CIMB Thai Digital Banking application.