Thai Union Sets a New Benchmark With its First Muay Thai USD Bond Offering

3rd May 2016, Bangkok, Thailand –- Thai Union Group Public Company Limited (TU), the world's largest shelf-stable tuna processor and owner of a leading global portfolio of seafood brands, successfully completed its debut USD 75 million, with 10-year tenor. The USD Debenture, which is senior unsecured, was priced at a fixed coupon of 3.66%. This represents the credit spread of approximately 185 bps over 10-year US Treasury at the time of pricing. The Company is locally rated at AA- by TRIS Rating Co., Ltd.

Mr. Thiraphong Chansiri, President and CEO of Thai Union, said Thai Union’ s success in its FIRST USD debenture is a result of the investors’ strong confidence in our proven performance, and growth story. This USD debenture is an important step for us in the international debt capital markets, after several successful THB debenture issuances. It is also a great first fund raising transaction done by the company after receiving Thailand’s Global Treasury Center license. We look forward to new growth opportunities and continued implement of new initiatives that would further strengthen Thai Union Group’s financial position, both domestically and internationally.

Mr. Prakob Phiencharoen, Head of Debt Capital Markets, Capital Financing, HSBC Thailand said HSBC is very pleased to be entrusted once again by Thai Union to lead another landmark transaction which paves the way for TU to international debt capital markets. This FX bond provides not only more options to issuers for fund raising, but lower costs of funding and more efficient asset management especially cash flows in foreign currencies. Moreover, issuing FX bond will provide more choices of investment to investors locally as well as help develop Thailand’s debt capital market.

The debenture was issued according to FX bond regulations stipulated by Securities and Exchange Commission of Thailand and approved by the Bank of Thailand. The proceeds from this issuance will be for general corporate purposes and to support Thailand’s Global Treasury Center functions.”

HSBC is appointed as sole lead arranger and sole bookrunner for the debenture issuance.