Singha Estate has filed to offer a new series of bonds to the general public with a maturity of 3 years at an interest rate of 5.00% per annum, expected to be available for subscription between February 8-9 and 12, 2024. The bonds have a credit rating of "BBB", classified as Investment Grade, while the corporate credit rating stands at "BBB+" with a Stable outlook, as rated by Tris Rating.

Bangkok, January 10, 2024 - After successfully issuing bonds in 2023 with a total sales value of 1.7 billion baht, reinforcing investor confidence in the growth of Singha Estate Public Company Limited ("S"), the company is ready to offer a new series of bonds to the general public. The company has submitted a request for approval and a bond information filing to the Securities and Exchange Commission (SEC) for the issuance of registered bonds that are unsubordinated, unsecured, and have a bondholder representative. The bonds will have a maturity of 3 years, an interest rate of 5.00% per annum, with interest paid every 3 months, a minimum subscription of 100,000 baht, and increments of 100,000 baht. The offering is expected to take place between February 8-9 and 12, 2024. The company has appointed three financial institutions as bond underwriters: Krung Thai Bank, Kasikorn Bank, and Kiatnakin Phatra Securities.

The bonds have been rated by Tris Rating on January 8, 2024, at "BBB", which is classified as Investment Grade, while the corporate credit rating is at "BBB+" with a Stable outlook. Tris Rating indicates that this credit rating reflects the company's continuous recovery in the hotel business, as well as plans for expanding various real estate projects. Additionally, Tris Rating forecasts that the company's debt burden will decrease over the next 2-3 years. The credit rating also reflects the good quality of the company's hotel assets and the well-recognized brand of its residential projects, which have performed according to plan and generated regular income from commercial real estate.

Singha Estate Public Company Limited ("S") is engaged in real estate development, including hotel operations managed by S Hotel and Resort (SHR), a subsidiary that has shown outstanding performance in the past year. Currently, SHR owns a total of 38 hotels with 4,552 rooms located in key tourist destinations across 3 regions in 5 countries. The residential real estate business focuses on developing both horizontal and vertical projects, emphasizing the luxury segment, including single-family homes, condominiums, and home offices. The commercial real estate business includes office buildings and retail spaces for lease in prime locations, which have good growth potential and investment returns, as well as industrial estates and rental infrastructure, along with investments in joint ventures in combined heat and power generation.

Ms. Thitima Rungkwansirirot, CEO of Singha Estate Public Company Limited ("S"), stated that for the performance in the first 9 months of 2023, the company reported total revenue from sales and services of 10,072 million baht, with revenue from real estate sales growing significantly by 34%, driven by the launch of 3 projects under 3 brands, including the major project S’RIN Ratchaphruek-Sai 1 valued at over 3,000 million baht and ready to recognize revenue immediately. Meanwhile, revenue from service businesses increased by 16% due to the continuous recovery of the hotel business and the global tourism industry, along with improvements to key hotel rooms in Thailand and Fiji in the fourth quarter to prepare for welcoming guests during the tourism season, boosting the average daily room rate (ADR) potential for significant growth. The commercial real estate business continues to show a positive trend in the final quarter of the year, as revenue recognition from the leasing of S Oasis building progresses, and the industrial estate and infrastructure businesses also maintain a positive outlook.

“Singha Estate's revenue in the first 9 months has grown according to the investment plan, alongside effective cost control suitable for the business expansion and new market openings, resulting in an Adjusted EBITDA of 2,276 million baht, an increase of 32% from the same period last year. This performance demonstrates the company's adaptability to seize opportunities in line with the recovery of the residential and hotel sectors and reflects the success of developing products and services that enhance the quality of life for customers, which Singha Estate has consistently pursued. We are confident that in the fourth quarter, we will drive the highest performance of the year due to the revenue recognition from the new project S’RIN Ratchaphruek-Sai 1 valued at 3,800 million baht, which launched in early the fourth quarter and has received good interest with bookings exceeding 10% of the target, along with SHR's hotel portfolio benefiting from newly renovated room types ready to serve customers during the peak travel season, as well as the resurgence of demand from the long-haul market following the reopening of flight routes.

We are confident in achieving our goal of generating record-high revenues and laying a strong foundation for long-term growth, alongside a commitment to sustainable development for customers, partners, society, and environmental stewardship, while maintaining good financial discipline and preparing to access the most suitable financial instruments for market conditions at each stage to enhance our readiness to support continuous growth for the company and maintain the net debt-to-equity ratio in line with the company's management policy,” Ms. Thitima added.

The Singha Estate bonds are expected to be offered to investors between February 8-9 and 12, 2024 through three leading financial institutions nationwide:

  • Krung Thai Bank, Tel. 02-111-1111 (individuals can subscribe online via the Krungthai NEXT application as another channel)
  • Kasikorn Bank (individuals can subscribe online via https://www.kasikornbank.com/kmyinvest except for foreign nationals and legal entities who can subscribe through the head office and branches), Tel. 02-888-8888 press 819
  • Kiatnakin Phatra Securities, including Kiatnakin Phatra Bank as the sales agent of Kiatnakin Phatra Securities, Tel. 02-165-5555 or Application DIME

Currently, the company is in the process of filing information and a draft prospectus with the SEC, which is not yet effective. For general investors interested in subscribing to the bonds, further details can be found in the draft prospectus at www.sec.or.th

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