Minor International Public Company Limited (MINT) has successfully completed the issuance of subordinated perpetual debentures No. 1/2023, raising a total amount of Baht 10.5 billion. The issuance, which exceeded the initial target, reflects the market’s confidence in all of MINT’s business units. The success of this offering is part of the company’s comprehensive “Back to Growth” strategy to drive business growth on every front.
MINT is confident that the proceeds from the offering will strengthen its financial position and liquidity, supporting the business and growth targets for 2023, and benefiting investors and stakeholders who have supported and believed in MINT’s business operations over the years. The subordinated perpetual debentures have a 5-year non-call feature with a coupon rate of 6.10% per annum for the first five years, and the coupon rate will be adjusted every five years according to the 5-year government bond yield while interest will be paid semi-annually.
The successful offering of these subordinated perpetual debentures reflects investors’ confidence in MINT’s ability to navigate and drive growth through challenging times, as stated by Mr Dillip Rajakarier, Group Chief Executive Officer of Minor International PCL (MINT). The company’s three primary businesses, including Minor Hotels, Minor Food, and Minor Lifestyle, have seen a stronger performance from the tourism industry’s recovery and brisk consumer spending, returning to profitability. Operating results have consistently improved, particularly the revenue per available room of hotels across all regions, which has increased significantly, surpassing the COVID-19 outbreak era.
MINT’s latest offering of subordinated perpetual debentures received higher-than-expected interest from investors. The subscription amount of Baht 9 billion during the offering period between February 7 and February 9, 2023, exceeded the company’s expectations. The company exercised the greenshoe option of another Baht 1.5 billion to capture excess demand, raising a total of Baht 10.5 billion from this transaction. The funds from the debentures will be utilized to efficiently manage the company’s capital structure and financial cost structure, as well as to further support the goal to accelerate growth this year.
The issuance of these subordinated perpetual debentures is a significant milestone for MINT, reflecting its strong financial position and business strategies. The company is grateful to all investors for their unwavering trust and support, as it strives to maintain and enhance its long-term relationship with all stakeholders under the concept of “Bond with Us” for the sustainable growth of the company.
MINT’s latest offering of subordinated perpetual debentures was rated “BBB+” by TRIS Rating, while MINT was rated “A” with a “stable” outlook. The ratings reflect MINT’s strong business position, diversified revenue streams, and established presence in the tourism and hospitality industry.
In conclusion, the successful issuance of subordinated perpetual debentures reflects the confidence of investors in MINT’s business operations, financial position, and growth strategies. The proceeds from the offering will further support MINT’s “Back to Growth” strategy, benefiting investors and stakeholders who have supported and believed in MINT’s business operations over the years. MINT is confident that 2023 will be a remarkable year of strong financial results and robust business growth, outperforming those achieved during previous years.
Written by: Supaporn Pholrach (Joom)