Villa Kunalai Public Company Limited ("KUN") has submitted a filing to the Securities and Exchange Commission (SEC) to prepare for the sale of bonds worth up to 440 million baht with a maturity of 2 years and 9 months. The sale is expected to take place from October 18 to 20, offering a fixed interest rate of 7.00% to institutional and/or major investors. The proceeds will be used to purchase land for residential project development, repay bonds, and provide working capital for business expansion, aiming for a revenue growth of 10-15% and a pre-sale target of 1.7 billion baht.

Ms. Prawirat Tevaakson, CEO of Villa Kunalai Public Company Limited ("KUN"), revealed that the company has filed a draft registration statement with the SEC for the bond sale of 440 million baht, which is expected to be offered between October 18 and 20, 2022.

The bonds will be offered to institutional investors and/or major investors through Bluebell Securities Co., Ltd., Mertion Partners Public Company Limited, and UOB Kay Hian (Thailand) Public Company Limited as underwriters. The bonds have a maturity of 2 years and 9 months, with a fixed interest rate of 7.00% per annum, with interest paid every three months throughout the bond's term.

This bond issuance is part of a financial strategy to support sustainable long-term growth, with plans to invest in residential development, including purchasing land for future projects worth 200 million baht, repaying bonds worth 150 million baht, and using the remaining 90 million baht as working capital for project development.

The company's bonds have been rated by TRIS Rating, a Thai credit rating agency, with an organizational credit rating of "BB" and a "Stable" outlook. The company's revenue and profits are in a growth phase, although it is smaller compared to competitors with higher credit ratings. The company has a concentrated project portfolio, with 4 out of 5 projects located in the same area in Bang Bua Thong, Nonthaburi Province, focusing on developing low to mid-range residential projects. The company's debt burden is expected to increase over the next three years due to new project launches, leading to tighter liquidity, but it is manageable.

“This bond issuance will strengthen the company's financial position to support new investments, as we are currently investing in various projects, further enhancing our credibility after TRIS Rating assigned a "BB" credit rating with a "Stable" outlook,” said the CEO of Villa Kunalai Public Company Limited ("KUN").

The CEO also discussed the company's business outlook for the second half of 2022, stating that the company has developed marketing strategies to stimulate sales, anticipating a recovery in purchasing power through various promotional campaigns to boost sales for the Kunalai Begins 2 project, which consists of townhomes, along with the gradual rollout of other campaigns.

Additionally, in the fourth quarter of 2022, the company plans to launch the Kunalai Navara project in Bang Khun Thian, Rama 2, valued at 3.5 billion baht, with sales expected to begin in the first quarter of 2023. The company believes this project will receive a positive response and sees the Kunalai Navara project as a flagship project that will enhance the company's reputation, leading to confidence that the overall performance for 2022 will achieve the targeted growth of 10-15%, aligning with the pre-sale target of 1.7 billion baht.