BG Container Glass Public Company Limited, or <\/span><\/strong>BGC, has successfully offered its first bond sale with a 3-year maturity and a fixed interest rate of 2.98% per annum, totaling up to 1 billion baht for institutional investors. On the first day of the offering, demand exceeded expectations, highlighting the company's potential as a leader in Total Packaging Solutions. With a credit rating of "A-" and a "Stable" outlook from Tris Rating, the response has been overwhelmingly positive. In the second half of the year, the company aims to strengthen its position through continuous core strategies, expecting sales revenue to exceed targets this year.<\/span><\/strong><\/p>

Mr. Silparat Wattanaketsathit, CEO of BG Container Glass Public Company Limited (BGC), a major producer and distributor of glass packaging and packaging solutions in Thailand and the ASEAN region, revealed that the company offered its first bond sale (1/2565) to institutional investors on August 29-30, 2022. The offering received an excellent response, with subscriptions exceeding the allocated amount from the very first day. This bond is a registered bond type, non-subordinated, unsecured, and without a bondholder representative, with a maturity of 3 years due in 2025, totaling no more than 1 million units at a selling price of 1,000 baht per unit, with a total value of no more than 1 billion baht. The fixed interest rate is set at 2.98% per annum, with interest payments every six months, and will be offered through United Overseas Bank Limited (UOB), which is the bond distribution manager.<\/span><\/strong><\/p>

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The company has maintained its credit rating of "A-" with a "Stable" outlook as of July 26, 2022, from Tris Rating, reaffirming its business potential as a leader in Total Packaging Solutions. Its main products include a variety of glass packaging and packaging solutions such as paper packaging, plastic packaging, plastic films, plastic caps, PET bottles, and preform tubes. The company has demonstrated strong performance and continuous profitability, reflecting its status with increasing cash flow and the ability to cover interest payments (Interest Coverage Ratio). The debt-to-equity ratio for the first half of 2022 stood at 1.6 times, and the debt-to-equity ratio as of June 30, 2022, was 2.10 times, indicating strong financial stability.<\/span><\/p>

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"This is a remarkable achievement for BGC's first bond sale, which has received a positive response from institutional investors looking to invest in a stable bond. Our objective is to use the funds to repay loans within 2022, which will maintain the company's financial strength and prepare us to handle the rising interest rate environment," said Mr. Silparat.<\/span><\/p>

The CEO of <\/span><\/strong>BGC stated that the company's operations for the remainder of this year will focus on strengthening and achieving revenue growth compared to the same period last year, driven by increased domestic demand for glass packaging and packaging solutions following the easing of COVID-19 control measures and the full reopening of the country. The company will continue its core strategies from the first half of the year, including (1) continuously improving efficiency and reducing waste in the production process, (2) incorporating new technologies and innovations into production, (3) adjusting production formulas to control costs, (4) managing inventory levels appropriately, and (5) negotiating product prices in line with production costs.<\/span><\/strong><\/p>

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Currently, the company divides its products into two groups: glass packaging and packaging solutions. For 2022, it aims for sales revenue growth of over 10% compared to the previous year. In the first six months of this year, the company reported sales revenue of 7.355 billion baht, a 17% increase from the same period last year, and a net profit attributable to shareholders of 325 million baht, a 5% increase from the same period last year, due to increased revenue and sales volume in the glass packaging and packaging solutions segments, particularly in beer, food, and beverage packaging, following the easing of travel restrictions and the full reopening of the country, as well as the public's growing comfort with the COVID-19 pandemic situation. Additionally, the company is focused on enhancing production efficiency, reducing waste, adjusting production formulas, and incorporating technology into its factories to maintain profit margins, reinforcing its ability to quickly adapt strategies in response to economic conditions and various factors.<\/span><\/p>

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In the long term, the company aims to increase revenue to 25 billion baht, doubling from 11 billion baht in 2020, while considering opportunities for investment expansion in the glass packaging and packaging solutions sectors to enhance its growth potential continuously.<\/span><\/p>