'MTC' sells bonds, raises funds for 'expanding business'

Muangthai Capital Reveals Successful Sale of 4 Billion Baht Debt Stocks, Fully Subscribed, Reflecting Positive Investor Response, Prepared to Reimburse Previous Debt, Expand Business, Confident in Record-High Earnings This Year

Mr. PArithad Petampai, Deputy Managing Director of Muangthai Capital Public Company Limited (MTC), disclosed that the company had offered a new set of bonds totaling up to 4,000 million baht between June 9th and 11th, which received an overwhelmingly positive response from investors, fully subscribed and reflecting strong investor confidence in the company's robust growth.

The offered bonds were divided into two sets. Set 1 matures in 1 year and 5 months with a fixed interest rate of 3.00% per year, while Set 2 matures in 3 years, 5 months and 2 days, carrying a fixed interest rate of 3.65% per year, with interest payments every 3 months. These bonds received a credit rating of BBB+ from Tris Rating, indicating the company's strong financial status, manageable impact from the limited spread of the COVID-19 virus and effective financial management.

A portion of the proceeds from this bond offering will be allocated to repay long-term debt obligations and the rest will facilitate business expansion. The company aims to open approximately 600 new branches this year, utilizing these funds to support loans growth plans and as working capital for ongoing business operations.

"The response to this bond offering has exceeded expectations. Investors have shown immense interest, fully subscribing to our bonds. Currently, the company holds approximately 8,000 million baht in unutilized bank loans. If we receive an additional 4,000 million baht from this bond sale, it will fortify MTC's financial position, enhancing operational flexibility for the next 12 months" stated the spokesperson.

Regarding the operational outlook for 2020, the company anticipates setting new records in revenue and profits, expecting a continuous growth following the forecasted expansion of new loans, estimated at around 12,000 million baht or a growth of approximately 20-25% from the previous year. Consequently, the outstanding loans by the end of this year is projected to increase to 70,000 million baht from the previous level of 60,000 million baht. On the investment front, the company plans to invest approximately 100 million baht this year to expand 600 new branches, targeting a total of 4,700 branches by year-end, up from the current 4,473 branches.

Looking towards the latter half of the year, it is expected that loans expansion trends will rebound following a significant injection of funds by the government in recent times. However, it is speculated that the demand for new loans may experience a slight delay after the government's financial aid is fully utilized and various lockdown measures are eased. Nevertheless, it is anticipated that once the state-provided funds diminish and lockdown measures relax, the loans demand will return to normalcy.

Moreover, in terms of assisting customers affected by COVID-19, there are presently customers restructuring debts, delaying repayments, reducing installments or decreasing interest rates, totaling around 5-6 thousand million baht or approximately 10% of the total outstanding loans.