Thai Airways International celebrates Success in Senior Debentures Issuance

Thai Airways International in cooperation with Standard Chartered Bank, Bangkok Branch and Siam Commercial Bank - as joint lead arrangers together celebrated and proclaimed the success in their senior debentures issuance.

Following the success of the debentures issuance on 12 May 2005, the management issued the coupon rate of 3.82%, 4.67% and 5.19% respectively for the debentures of Thai Airways International Public Company Limited No1/2548 issue, comprising the first issuance of THB6,000 Million due 2008 with a 3-year tenor, the second issuance of THB6,000 Million due 2011 with a 6-year and the third issuance of THB3,000 Million due 2015 with a 10-year tenor - all totaling THB15,000 Million with over 1.7 times oversubscription.

Mr. Kanok Abhiradee, THAI’s President said “On behalf of the management team and employees of THAI, I would like to thank both institutional and retail investors for their support and confidence they have expressed. We will continue to develop and grow our services. Funds raised from the debentures issue will be fully utilized for making a down payment of aircraft and for working capital of fiscal year 2005.

We are proud that our THAI senior debenture is an opportunity that investors find attractive. With our superiority in technology, state-of-the art services, proactive marketing strategies and prudent financial policies, we believe that we will remain a stance of a leading national airline and develop our business for the benefit of all investors.”

Standard Chartered Bank, Bangkok Branch and Siam Commercial Bank as joint lead arrangers stated “We are pleased that both institutional and retail investors overwhelmingly partook in this offer with 1.7 times oversubscription, reflecting on all investors’ confidence in the company’s strength and transparency performance. Moreover, due to an affirmed rating of AA- by TRIS, to which is higher than the Investment Grade, THAI’s senior debentures becomes more appealing in terms of investment This will mainly help THAI to mobilize their future funding.

With the THAI’s strengths on experienced management team members, proactive business strategy considered from their airlines routing adaptation strategies, well-planned rebranding scheme especially the corporate identity, including robust policy in risk management for external factors which are foreign exchange and oil vulnerable price, we managed to offer all debentures with full success.” concluded the joint arrangers.

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