LPN Offers 3-Year Bonds to General Investors

Fixed Interest Rate of 3.95% from May 10 to 12, 2021

LPN is preparing to issue 3-year bonds with a fixed interest rate of 3.95% for general investors, available for purchase from May 10 to 12. Interest will be paid every 3 months, with a minimum subscription of 100,000 baht through 4 financial institutions acting as bond distribution managers.

Mr. Apichat Kasemkul Siri, Senior Financial Executive at L.P.N. Development Public Company Limited (LPN) announced that LPN is set to offer unsecured, non-subordinated bonds with a representative for bondholders to general investors. The bonds will have a 3-year term and a fixed interest rate of 3.95% per annum, with interest payments every 3 months. The minimum subscription value is 100,000 baht, and increments of 100,000 baht are allowed. The offering period is from May 10 to 12, 2021, with the proceeds intended for land purchases to support business expansion and future revenue growth targets as outlined in the business plan for 2021-2024.

 

“The LPN bonds present a great opportunity for investors seeking a stable return. They are reliable bonds, as LPN is a well-recognized company with over 30 years of continuous and stable growth in the real estate development sector. Both the company and the bonds have been rated by Tris Rating at 'BBB+' with a 'stable' outlook, reflecting Tris Rating's expectation that LPN will maintain its performance as projected and deliver sales that are awaiting revenue recognition as planned, even amidst fierce market competition. This reinforces confidence in LPN's leadership in the real estate business, along with its well-regarded brand in both condominium and residential housing segments. LPN remains committed to sustainable growth, maintaining competitiveness, adhering to disciplined financial policies, and continuously offering diverse products to meet the evolving lifestyles of consumers,” said Mr. Apichat.

 

Furthermore, LPN has set its strategy for 2021-2024 as a year for driving the organization towards sustainable growth, focusing on revenue and profit growth, effective cost management, and enhancing the quality of housing and services to meet customer needs in all dimensions, with a revenue target of no less than 16 billion baht by 2024. In 2021, the company plans to launch 6 residential projects valued at approximately 5.5 billion baht and 2-3 condominium projects valued at around 3 billion baht.

Additionally, Tris Rating expects the company's average gross margin to remain above 30% during 2021-2023, and anticipates that the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) will be in the range of 1,000-1,500 million baht per year during 2021-2023. Tris Rating estimates that the company will maintain an EBITDA margin exceeding 15% and a net profit margin between 8%-10% throughout the forecast period.

 

For general investors interested in investing in the bonds of L.P.N. Development Public Company Limited, please find more details at https://market.sec.or.th/public/ipos/IPOSDE01.aspx?TransID=329779 or contact the four financial institutions managing the bond distribution:

  •  Bangkok Bank Public Company Limited   Tel. 1333                   
  •  Krung Thai Bank Public Company Limited Tel. 02-111-1111 
  • Kiattana Kin Pattr Company Limited (including Krung Thai Bank Public Company Limited as a sales unit) Tel. 02-165-5555 
  • Krung Thai Semico Company Limited Tel. 02-695-5000