RT has appointed KTBST along with 8 securities firms to issue two sets of bonds with a duration of 3 years and 6 months at an interest rate of 5.25% and 5 years at an interest rate of 5.75% respectively, aimed at institutional and major investors. The funds will be used for new project investments, enhancing the backlog target of 8.5 billion baht, as well as for working capital in construction projects and repaying loans to financial institutions. The subscription period is set for August 8-10, 2022, with the bond issuance date on August 11, 2022.

Dr. Chawalit Thanomthin, CEO of Right Tunneling Public Company Limited (RT), a specialist in civil engineering and geotechnics, revealed that the company is preparing to expand its bidding capabilities and undertake projects in line with the ongoing government infrastructure bidding plans, aiming to meet the 2022 backlog revenue target of 8.5 billion baht.

The company has appointed KTBST Securities Public Company Limited as the bond underwriter to offer long-term bonds, specifically named, non-subordinated, and unsecured, with a bondholder representative. The issuer has the right to redeem the bonds before maturity. The two sets of bonds include the first set of unsecured bonds from Right Tunneling Public Company Limited, maturing in 2026, with a duration of 3 years and 6 months and a fixed interest rate of 5.25% per annum, with interest paid every 3 months throughout the bond's life.

The second set of unsecured bonds from Right Tunneling Public Company Limited, maturing in 2027, has a duration of 5 years and a fixed interest rate of 5.75% per annum, with interest paid every 3 months throughout the bond's life. The total value of both bond sets will not exceed 1 billion baht.

Mr. Somsak Sirichainarimit, CEO of Asset Pro Management Company (APM) as a financial advisor, stated that the funds raised from this bond offering will be used for investments in new construction projects that the company is bidding for, as well as for working capital within the business and construction projects, and for repaying loans to financial institutions.

The company recognizes the growth potential of RT in the construction industry, leveraging its strengths as a contractor with expertise in tunneling and geotechnical work, and its ability to undertake various projects for both public and private sectors, which are stable client groups. Therefore, it is preparing financial tools and sourcing funding to support RT's capacity expansion in line with the increasing construction project opportunities.

Additionally, RT has been rated by TRIS Rating with a 'BBB-' rating and a 'Stable' outlook due to its expertise and specialized experience as a contractor, strong competitive capabilities, and proven track record in tunnel and underground construction, earning trust from both public and private sectors.

Meanwhile, Mr. Thitiphat Taveesin, Assistant Managing Director of Corporate Finance Solutions & REIT at KTBST Securities Public Company Limited stated that the bond offering is scheduled for subscription from August 8-10, 2022, with the bond issuance on August 11, 2022. This offering is targeted at institutional and/or high net worth investors, allowing interested investors to consider participating in the growth of a specialized construction business, particularly in tunneling and dam projects in the future. The company expects to continue achieving good operational results and has a significant amount of projects awaiting revenue recognition, making this a timely opportunity for the company to raise funds through this bond issuance.

For the RT bond offering, there are 8 additional underwriters involved, including Asia Plus Securities, CGS-CIMB Securities (Thailand), Yuanta Securities (Thailand), Phillip Securities (Thailand) Public Company Limited, Nomura Pattanasin Public Company Limited, Mertion Partners Public Company Limited, Krungthai Xspring Securities, and Finansa Securities Public Company Limited. The bond registrar is Krungsri Bank Public Company Limited, and the bondholder representative is KTBST Securities Public Company Limited.