Sivaram Real Estate Public Company Limited (“SVR”) is set to embark on a roadshow targeting major investors and institutions from May 31 to June 2, 2023, to offer its first bond issuance of 2023. The first tranche will be up to 300 million baht with a fixed interest rate of 7% per annum, and the second tranche will also be up to 300 million baht with a fixed interest rate of 7.35% per annum for a term of 2 years and 6 months. The attractive interest rates will be paid quarterly, and the bonds will be offered through five brokers: Globlex Securities, Dao Securities, Pie Securities, Beyond Securities, and Phillip Securities from June 26-28. Additionally, the company hints at launching three new projects in the second half of the year to significantly boost operational performance.

Mr. Ronarit Thitisuriyarak, Executive Director and Senior Chief Financial Officer of Sivaram Real Estate Public Company Limited (SVR), revealed that the company is preparing to present information (roadshow) from May 31 to June 2, 2023, to offer long-term, non-subordinated, unsecured bonds. The bondholders will have representatives, and the issuer has the right to redeem the bonds before the maturity date. The bonds will be issued in two tranches: the first tranche of up to 300 million baht with a term of 1 year and 9 months at a fixed interest rate of 7% per annum, and the second tranche of up to 300 million baht with a term of 2 years and 6 months at a fixed interest rate of 7.35% per annum, with interest paid every three months. The minimum investment is set at 100,000 baht and can be increased in increments of 100,000 baht for institutional and high-net-worth investors seeking quality bond investment opportunities. The bonds will mature on December 29, 2025, and can be redeemed by the issuer starting from June 29, 2024.

The bonds will be offered from June 26-28, 2023, through five securities firms: Globlex Securities, Dao Securities (Thailand) Public Company Limited, Pie Securities Public Company Limited, Beyond Securities Public Company Limited, and Phillip Securities (Thailand) Public Company Limited. The company is currently in the process of submitting a registration statement to the Securities and Exchange Commission (SEC), and it is not yet effective.

“With this bond offering, SVR plans to use the proceeds to repay loans amounting to 160 million baht and to purchase land for property development projects totaling 440 million baht, which will enhance future projects and significantly increase the company's revenue and profit. At the same time, this reinforces our growth potential towards a high-growth level, aligning with our position as a leader in quick turnover project development, with a keen market outlook and readiness to adapt to any situation at all times,”

Mr. Ronarit also emphasized the company's performance in the first quarter of 2023, stating that SVR achieved a net profit of 23.84 million baht, an increase of 140.56% from the same period last year when the net profit was 9.91 million baht. The total revenue reached 215.14 million baht, up 60% from 134 million baht in the same period last year, while the net profit margin improved to 11.30% from 7.46% in Q1 2022. The cash flow at the end of the first quarter stood at 30.19 million baht, exceeding the company's target.

The company has also assessed growth opportunities for the remainder of the year, indicating that from Q2 2023 onwards, overall performance will continue to improve, with Q3 and Q4 expected to see significant step-up growth due to the launch of new projects. These include the Sivaram Village project (Bang Kruai-Sai Noi) valued at 691 million baht, set to launch in July, which will start generating revenue from Q3 2023. Additionally, two other projects, Sivaram Park (Soi Pracha Uthit 76) valued at 528 million baht and Sivaram Hide (Kanchanaphisek Ring Road) valued at 401 million baht, are scheduled to launch in Q4 2023, with revenue recognition expected within the same quarter, contributing to a significant growth rate for the company in 2023.

“The company aims to maintain a growth rate similar to previous levels consistently. Meanwhile, we are in a strong financial position. Recently, the company successfully raised funds through an IPO, resulting in a debt-to-equity ratio (D/E) of below 1. To strengthen our financial status further, we plan to issue bonds to balance our financial costs. The proceeds from this bond issuance will be used to invest in land and expand our business according to our plans, aiming for significant growth in the future.”