Yoma Strategic taps Thai bond investors for new source of capital

Yoma Strategic Holdings is planning a bond offering to raise THB2.3 billion (US$70 million) in Thailand. The bonds have been given a triple A rating, according to a statement filed with the Singapore Exchange on Wednesday.

The bonds, which will be guaranteed by the Asian Development Bank’s Credit Guarantee and Investment Facility (CGIF), will enable Yoma Strategic to tap Thai investors for an additional source of capital at a time when trading on the Singapore Exchange, where it is listed, has slowed.

The rating and outlook for the guaranteed bonds solely reflect the creditworthiness of its guarantor, CGIF, according to TRIS Ratings

Yoma Strategic will announce the definitive principal terms of its bonds after it has made the final document filings with the Thailand Securities Exchange Commission for its bond offering to become effective, the company said.

Yoma Strategic plans to utilise proceeds from the bond offering “to refinance existing indebtedness and to fund capital expenditures in the operating businesses.

The company is developing a $400 million mixed-development project – Yoma Central – in the heart of downtown Yangon.

Units of Peninsula Residences Yangon, a collection of 96 private luxury homes within Yoma Central, are already on sale. The project, which also includes two Grade A office towers and a shopping mall, is being developed next to The Peninsular Yangon hotel, which is now being built within the former colonial headquarters of the Myanma Railway Company.

Last month, the company launched City Loft, a new mass market housing project within its existing StarCity development in Yangon.

The company also runs the KFC fast food franchise and a heavy equipment and automotive business in Myanmar. It owns a stake in mobile money services provider Wave Money.

For the six months to September 30, 2018, Yoma Strategic announced revenues of S$71.2 million, which is up by 20pc from the year before. Earnings doubled to S$21 million. The increase was mainly driven by new sales of apartments in StarCity Galaxy Tower 2 and Tower 4, which are nearly completed, according to Yoma Strategic’s financial statements.

Currently, the company borrows from local and foreign financial institutions in the form of short-term and long-term loans and limited recourse project loans. As at 30 September, 2018, the company owed a total of S$313.3million. At those levels, the company is 23.8pc geared.

Shares of Yoma Strategic closed yesterday at 34.5 Singapore cents each, which is up from a low of 25 Singapore cents in October. At current levels, the company has a market value of S$633.5 million, according to Bloomberg.

Source: Myanmar Times

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