Yoma Strategic Holdings Z59 -1.28% has announced that it will raise THB1.7 billion ($65.2 million) through a second Thai bond issuance on Nov 22 in the form of a Thai Baht denominated guaranteed bond offering. 

 

According to Yoma, the bonds have been rated AAA by TRIS Rating, a partner of S& P Global Ratings, and are fully guaranteed by the Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank.

 

The fixed-rate bonds, with maturities of three and five years, will allow Yoma to optimise its debt maturity profile, says the company. 

 

Despite the challenging market conditions, the issuance of the proposed bonds has garnered healthy interest from Thai institutional investors, drawing both existing participants from Yoma&rsquo s first bond issuance in 2019 and new investors.

 

Yoma will use the entire proceeds from the bond issuance for the partial redemption of the existing THB2.2 billion bonds issued by the company on Jan 25, 2019. 

 

In line with Yoma' s ongoing commitment to deleverage its balance sheet and enhance financial stability, the remaining amount of bonds issued in 2019 will be redeemed using its operating cash flow. 

 

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Melvyn Pun, CEO of Yoma, says: &ldquo The successful completion of the transaction is another important step in strengthening our balance sheet and optimising our capital structure.&rdquo

 

&ldquo We are sincerely thankful for the continuous support that our investors and partners have extended to us throughout this journey. Their unwavering trust and commitment to Yoma Strategic have been the cornerstones of the success of our second bond issuance,&rdquo he adds.