MTC Offers 4 Billion Baht in Bonds to Support Financial's Plan, Boosting 2019's Performance to Break New Records

MTC is preparing to issue bonds worth up to 4 billion baht at a fixed interest rate of 4.10-4.30% per year to support the plan for releasing motorcycle title loans confidently in 2019. This move aims to generate a new consecutive record of revenue and profits.

Mr. Parithad Petampai, Deputy Managing Director of Muangtai Capital Public Company Limited (MTC), revealed that the company will offer bonds totaling 3,000 million baht and has reserve bonds for additional offerings up to 1,000 million baht, divided into 2 sets. Set 1 has a maturity period of 3 years 6 days with an interest rate of 4.10% per year, while Set 2 has a maturity period of 3 years 8 months 11 days with an interest rate of 4.30% per year, paying interest every 3 months throughout the bond's term. The offering is available for general investors to subscribe on February 18, 20, and 21, 2019, facilitated by Bangkok Bank, Krung Thai Bank, Kasikornbank and CIMB Thai Bank.

"We are preparing to utilize the funds raised from this bond issuance to expand branches, as working capital and partially to manage financial institution debts to support this year's loan growth plan, targeting a 35% growth in new loan growth, which will drive revenue and profits to achieve consecutive new highs. The company plans to open 600 additional branches, resulting in over 3,900 branches nationwide by year-end" stated Mr. Parithad.

Moreover, this bond issuance serves as a financial leverage to cope with the rising interest rate trend.

Additionally, TRIS Rating Co., Ltd., has assigned an 'BBB' credit rating to MTC, reflecting its longstanding track record, leadership in the personal secured loan business, strong market position, considering various strengths such as profit-making ability, adequate provisioning of non-quality loans and an extensive branch network.