MTC Offers 2 Tranches of Debentures on February 18-19 and 22, 2021, to Support Credit Portfolio Expansion and Boost Business Wingspan

MTC, the leading motorcycle title loans provider in Thailand, is issuing 2 tranches of debentures for general investors between February 18-19 and February 22, 2021. These debentures consist of a 2-year 2-day maturity with a 2.95% annual yield and a 3-year 19-day maturity with a 3.23% annual yield, paying interest every 3 months (except for the first installment) This move aims to support the loans portfolio expansion and bolster the business wingspan.

Mr. Parithad Petampai, Deputy Managing Director of Muangthai Capital Public Company Limited (MTC), disclosed that the company has submitted the prospectus and initial offering documents to the Securities and Exchange Commission (SEC) to issue and offer specific-named holder debentures, without collateral and with representatives, to the general public (Public Offering) These tranches consist of debentures with a 2-year 2-day maturity, offering a 2.95% annual yield, and a 3-year 19-day maturity, offering a 3.23% annual yield. The anticipated sales are scheduled between February 18-19 and February 22, 2021.

The company's credit rating stands at BBB+ with a 'stable' outlook as assessed by TRIS Rating on December 16, 2020. The funds acquired from the debenture offering will be utilized to repay loans and as circulating capital for loans portfolio expansion.

The Deputy Managing Director expressed confidence that MTC's debentures will receive positive responses from investors as the company has shown consistent growth rates and satisfactory returns on investments. Despite the ongoing challenges posed by the COVID-19 pandemic, MTC's business resilience, reflected in its BBB+ credit rating, demonstrates its leadership in collateralized personal loans business and its strong capital base. This, coupled with consistent profitability, stable non-performing loans (NPLs) in line with targets and diversified funding sources, positions the company's liquidity in a favorable range. Furthermore, MTC was honored with the Thailand Corporate Excellence Awards 2020 for financial management excellence, reflecting its outstanding financial management capabilities acknowledged by senior executives of leading Thai businesses.

MTC provides loan services to retail customers, boasting a total of 4,798 branches as of September 30, 2020 (surpassing the company's goal of expanding to 4,700 branches by the end of 2020) spread across 74 provinces nationwide. The company reported a net profit of 3.844 billion baht for the nine-month period and maintained a non-performing loan ratio at 1.06%, consistent with the previous year. Additionally, the company has untapped credit facilities from various financial institutions amounting to a total of 9.853 billion baht, ensuring adequate liquidity. The company's services encompass five main segments: motorcycle title loans, land and condominium title dee loans, personal loans, nano finance, motorcycle hire- purchase and insurance brokerage.