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Gulf secures approval for potential bond issuance worth THB 300 billion, with the funds to be progressively utilized for refinancing and investments in the coming 5-10 years.

Company Gulf Development Public Limited, in a recent shareholders' meeting, authorized the release of up to THB 300 billion in debentures. This move aims to refinance existing debentures and bolster resources for future investments.

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The Company, Gulf Development Public Limited, has confirmed that a extraordinary shareholders...
The Company, Gulf Development Public Limited, has confirmed that a extraordinary shareholders meeting, number 1/2025, held on the 30th of May, 2025, authorized the issuance and offer of debentures worth up to THB 300 billion. The funds raised will be utilized for refinancing current debentures and providing resources for future business ventures.

Gulf secures approval for potential bond issuance worth THB 300 billion, with the funds to be progressively utilized for refinancing and investments in the coming 5-10 years.

Here's a revamped take on that PR news:

Off to the Billions! Gulf Development Announces Monumental Bond Issue

Yowza! Gulf Development Public Company Limited, the very brilliant folks behind the scenes, dropped a bomb (alright, a rather large number) this week: they're planning to tap into a whopping THB 300 billion over the next 5-10 years through bond issues. What's this for, you ask? Refinancing their current debts and fueling future investments, that's what!

If you're wondering what a mere mortal means by "refinancing debts," fear not! The company aims to gradually issue debentures of around THB 30-50 billion each year, based on their funding needs and the market conditions at the time. There are THB 185.5 billion of outstanding debentures maturing between 2025 and 2035. Don't worry, these will be part of the new THB 300 billion limit and will be refinanced under this massive new bond issue.

What does this mean for the 'Gulf', you might wonder? Well, the extra funds will be channeled into several exciting projects, including renewable energy ventures in both Thailand and abroad, the expansion of the Map Ta Phut Industrial Port Phase 3 (that's an LNG terminal, for those who don't speak portspeak), the Laem Chabang Port Phase 3, and the development of digital infrastructure, like fancy-schmancy data centers. You know, the usual stuff that makes companies like 'em.

But wait! The 'Gulf' ain't none too reckless with their cash. They're keeping their financial house in order by ensuring their Net Interest-Bearing Debt-to-Equity (Net IBD/E) ratio stays below 2x over the next five years. That's some serious, long-term financial strength right there. Talk about walking the walk, not just talking the talk!

Enrichment Data

Gulf Development Public Company Limited has implemented a comprehensive, long-term debt management strategy following its merger with Intouch Holding Plc. Here's what's on their agenda:

  • Debt Management Strategy
  • Issuance Limit: Gulf Development has secured shareholder approval to issue debentures up to a huge THB 300 billion limit over the next 5-10 years. This sum is meant for refinancing existing debentures and supporting future investments[1][2].
  • Gradual Issuance: The company plans to issue debentures gradually, targeting approximately THB 30-50 billion annually, subject to funding needs and market conditions[1][2].
  • Refinancing Existing Debentures: Gulf Development currently has outstanding debentures totaling THB 185.5 billion, which will be refinanced within the new THB 300 billion limit as these debentures mature[1][2].
  • Future Investments and Projects
  • The proceeds from the debenture issuance will be used not only to refinance existing debt but also to fund various ongoing and future projects. These include domestic and international renewable energy projects, the Map Ta Phut Industrial Port Phase 3 (LNG Terminal), the Laem Chabang Port Phase 3, and digital infrastructure developments like data centers[2].
  • Financial Discipline
  • Debt-to-Equity Ratio: To ensure long-term financial strength, Gulf Development aims to maintain a net interest-bearing debt-to-equity ratio (Net IBD/E) of no more than 2 times over the next five years[2]. This approach showcases a commitment to careful financial management and maintaining a balanced financial structure.
  1. The upcoming international bond issue by Gulf Development Public Company Limited, estimated at THB 300 billion over the next decade, reveals their intent to finance both refinancing existing debts and supporting future investments in the business sector, particularly in renewable energy, port expansion, and digital infrastructure.
  2. Infrastructure development projects, such as the Map Ta Phut Industrial Port Phase 3, the Laem Chabang Port Phase 3, and digital data centers, are being lined up for financing with the proceeds from Gulf Development's bond issues, aimed at bolstering the company's presence within the industry.
  3. In addition to facilitating refinancing for existing debentures, Gulf Development has also emphasized the importance of financial discipline as it seeks to cap its Net Interest-Bearing Debt-to-Equity ratio at 2x, demonstrating a sustained commitment to a strong financial foundation over the next five years, thereby ensuring long-term growth in the international business and finance landscape.

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