PTT Exploration and Production Plc (PTTEP) is preparing to offer Asia’s first digital bonds worth 5 billion baht next month, allowing people to invest via the Pao Tang wallet, a mobile app developed by Krungthai Bank (KTB).
“PTTEP has returned to issue bonds to the public for the first time in 10 years. We’re pleased to offer an investment opportunity to Thai investors who expect steady returns,” said Montri Rawanchaikul, chief executive of PTTEP.
Investors can buy debentures with a minimum investment value of 1,000 baht.
The bonds, due in 2026, have a tenor of five years and bear a step-up interest rate with a minimum of 2.00% per year and a maximum of 2.75%, averaging 2.25% per year.
They were given an “AAA” credit rating for domestic bonds by Tris Rating in the middle of September.
PTTEP is scheduled to determine the issue size by the end of October and the offering is set for between Nov 2 and 4.
Mr Montri said cash from the bond issuance will be used to refinance outstanding loans and as working capital for the future growth of the company’s businesses.
PTTEP is reviewing its capital spending plan for the next five years as it needs to factor into its calculation newly acquired assets and oil and gas development contracts it was awarded.
The contracts include exploration and production of oil and gas in Malaysia, the Middle East, and the Erawan gas field in the Gulf of Thailand.
The final version for capital expenditure is expected to be completed between next month and December this year, according to Mr Montri.
Payong Srivanich, president and chief executive of KTB, said the bank is committed to using financial innovations to develop products and services that better meet the needs of customers.
Among the new products are the Pao Tang mobile app, which was used this year to distribute 4,000-baht subsidies to eligible workers under Section 33 of the Social Security Act as part the government’s We Love Each Other scheme.
The scheme was designed to ease the financial burden of workers during the pandemic.
Thais can access investment options via the Pao Tang platform, which was developed by Infinitas by Krungthai, a digital financial product developer under KTB, said Mr Payong.
Pao Tang is positioned as Thailand’s open digital platform, he said.
Mr Payong said gold investment through a digital wallet is the next stage of the bank’s financial technology development.