- TRIS Rating has rated the debentures A-
- The debentures promise an annual return of 5 percent for the first five years
- The debentures are expected to be issued and offered for sale between 26-28 November
Caption: Thiraphong Chansiri, CEO, Thai Union Group PCL.
24 October 2019, BANGKOK - Thai Union Group PCL., one of the world’s largest seafood companies, said it expects strong interest from investors in the company’s THB 4 billion debentures thanks to its robust financial structure and growth potential.
The subordinated perpetual debentures, which also include an additional greenshoe offering of THB 2 billion, will offer an annual return of 5 percent for the first five years., payable quarterly. TRIS Rating has rated the debentures A-, while Thai Union was rated A+ with a stable outlook.
The debentures, which are expected to be issued and offered for sale between 26-28 November, will strengthen Thai Union’s financial structure and build a long-term financial foundation for the company.
“At Thai Union, we have built a company that is financially robust thanks to our strict financial management,” said Thai Union CEO Thiraphong Chansiri. “We believe our stability, together with our potential for strong growth due to our global footprint and growing investment in innovation, will be attractive to investors, who are also looking for a healthy return on investment.”
Chansiri said the subordinated perpetual debentures will not only provide a strong financial structure for Thai Union but also give it the flexibility for growth and further investment to strengthen the company.
Thai Union’s subordinated perpetual debentures No. 2/2019 are payable upon liquidation with the issuer having a call option and unconditional interest deferral. The company also retains the right to call the debentures after five years or upon other conditions in accordance with the terms and conditions of the debentures as specified in the prospectus.
The debentures will be offered to the general public and/or institutional investors via joint lead arrangers Bangkok Bank, Krung Thai Bank, Siam Commercial Bank and Phatra Securities.
TRIS Rating rated Thai Union A+ because of its business performance as well as its strong strategy that focuses on new product development, cost controls and improving production efficiency. The company’s debt burden has also been lowered as a result of improved business performance and a reduction in expenditure.
Thai Union, which has a portfolio of 14 brands around the world, was recently ranked number one in the world in the Food Products Industry Index of the Dow Jones Sustainability Indices (DJSI) for the second year in a row, and has been named to the DJSI for six consecutive years, driven by its global sustainability strategy, SeaChange®.
Moreover, Thai Union’s Global Innovation Center (GIC), established in 2015, acts as a center for research and the development of products for the company’s brands around the world. It was also created to combine modern nutritional science and production innovations to develop products that address the needs of consumers and the global food industry. The GIC also uses technology and innovation to improve production processes, providing additional benefits and value to customers, consumers and stakeholders.
“Thai Union’s strict financial management, together with a strong and cautious approach to risk management, has always allowed the company to not only manage its debts but to continue to pay dividends to shareholders,” Chansiri said. “Thai Union also adopted the new accounting system TAS32 earlier this year, and these debentures align with these regulations.”
About Thai Union Group
Thai Union Group PCL is the world’s seafood leader bringing high quality, healthy, tasty and innovative seafood products to customers across the world for more than 40 years.
Today, Thai Union is regarded as the world’s largest producer of shelf-stable tuna products with annual sales exceeding THB 133.3 billion (US$ 4.1 billion) and a global workforce of over 47,000 people who are dedicated to pioneering sustainable, innovative seafood products.
The company’s global brand portfolio includes market-leading international brands such as Chicken of the Sea, John West, Petit Navire, Parmentier, Mareblu, King Oscar, and Rügen Fisch and Thai-leading brands SEALECT, Fisho, Qfresh, Monori, Bellotta and Marvo.
As a company committed to innovation and globally responsible behavior, Thai Union is proud to be a member of the United Nations Global Compact, and a founding member of the International Seafood Sustainability Foundation (ISSF). In 2015, Thai Union introduced its SeaChange® sustainability strategy. Find out more at seachangesustainability.org. Thai Union’s on-going work on sustainability issues was recognized in 2018 and 2019 by being ranked number one in the world in the Food Products Industry in the Dow Jones Sustainability Index, achieving a 100th percentile ranking for total sustainability score. Thai Union has now been named to the DJSI for six consecutive years. Thai Union was also named to the FTSE4Good Emerging Index for the third straight year in 2018.
Thai Union Group PCL.
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