MJD Successfully Completes Sale of New Bond Issue, Investors Fully Subscribe, Funds to Expand Business

Major Development has successfully closed the deal for a new bond issue worth 500 million baht, fully subscribed as expected. Investors are confident in the company's operations and are looking to use the funds for new projects, with a backlog of condominiums amounting to 9,023 million baht to be recognized continuously.

Ms. Petchlada Poonsawad, Executive Director of Major Development Public Company Limited (MJD), revealed that the bond offering, totaling 500 million baht, was made available to institutional and major investors from September 28 to 30, 2020. The company received a positive response, similar to previous offerings, resulting in the quick sale of the 500 million baht bond.

The bonds are unsecured, non-subordinated, with a maturity of 2 years and 6 months and a fixed interest rate of 6.80%, with interest payments made every 3 months throughout the bond's term. The bonds were distributed by two firms: Globlex Securities Co., Ltd. and Krung Thai Securities Co., Ltd..

“Currently, both major investors and institutions are choosing to invest more cautiously. They are selecting companies that maintain stability and have the potential to operate under current market conditions. The fact that our bonds received such excellent and rapid responses this time is likely a testament to the attractive returns, combined with investor confidence in the Major Development Group, as well as our strong performance in the first half of the year and the outlook for continued growth,” Ms. Petchlada stated.

Ms. Petchlada further added that the overall real estate development business is currently placing significant importance on careful cash flow management to prepare for any potential situations. For this bond issuance, the company plans to allocate the funds into three main areas: 1. Business expansion and investment in new projects, 2. Working capital within the company, and 3. Reserves for repaying bonds due in April 2021.

In the first half of 2020, the company maintained excellent operational performance despite the market being affected by the COVID-19 situation. The company was able to continuously transfer ownership of several newly completed projects, resulting in revenues of 3,836 million baht and a net profit of 118 million baht for the first half of the year. Additionally, the company had a backlog of approximately 9,023 million baht at the end of the second quarter of 2020, with expected revenue recognition from this backlog in the second half of the year amounting to around 2,500 - 3,000 million baht, continuing until 2025, not including new sales from ongoing projects.

According to the credit rating agency, Tris Rating, on July 10, 2020, Major Development Public Company Limited received a credit rating of “BB+, Stable.”

Major Development Public Company Limited is a luxury real estate development company with three main business groups: 1. Residential development for sale, 2. Commercial real estate projects, and 3. Real estate-related services. The company has a vision for continuous growth to create luxury projects that meet consumer demands.