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Thai True Corp delays 5 bln baht bonds to January

Thai True Corp delays 5 bln baht bonds to January

True Corp TRUE.BK, Thailand’s only integrated telecoms firm, said on Friday it had postponed an issue of up to 5 billion baht ($145 million) of bonds to January from this month as political tension had hit sentiment.

“But that prove lucky for us as interest rates are now on a downward trend, so we will get lower funding costs,” company financial chief Noppadol Dej-Udom told reporters.

The company had been expected to sell the bonds with maturities of up to five years and rated “BBB” by Thailand’s Tris Rating. The bonds were likely to be divided into two tranches and issued to both institutional investors and the public.

Bangkok Bank BBL.BK, Krung Thai Bank KTB.BK, Siam Commercial Bank SCB.BK, Kasikornbank KBAN.BK, and Siam City Bank SCIB.BK were the issue’s underwriter, Noppadol said.

The proceeds of the bonds would be used to repay existing debt, he added.

True is in the process of raising 19.5 billion baht through a rights issue, in part to fund investment in third-generation mobile services.

Its key mobile business, run by True Move, Thailand’s third largest mobile phone firm, signed a deal with Apple Inc in November to sell the 3G iPhone in Thailand, although the start date was still pending a decision by Apple, chief executive Supachai Chearavanont said.

Bigger rival Advanced Info Service ADVA.BK has said it is also still talking with Apple about iPhone.

Shares in True Corp closed down 3.87 percent to 1.49 baht on Friday, while the overall Thai market ended 1.04 percent lower. ($1=34.48 Baht) (Reporting by Pisit Changplayngam, writing by Arada Therdthammakun; Editing by Ed Cropley)

[Thanks: http://uk.reuters.com]

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