PTT Chemical Plc is to issue bonds to the tune of 4 bln baht in early October mainly to finance a 5 year plan that includes olefins capacity expansion and related intermediate and downstream investment. This issue was planned a year ago, with an initial amount of 12 billion baht, which got revised later to 8 bln baht.
This figure has now been revised to 4 bln baht due to economic uncertainties. Despite the uncertain economic scenario, PTT is buoyant about its fund-raising plan via the baht-denominated bonds- to be issued in two lots: one due in five years and another in 10 years. As per the plan, the first allotment will aid the company to check the status of the money market. The second allotment of two billion baht in bonds will be issued depending on the success of the first lot to draw investors.
PTT plans to expand olefins capacity to 3 mln tpa in late 2009 from the existing 1.7 mln tons. An investment of US$1.3 bl will aid in expansion of linear low-density polyethylene (LLDPE), low-density polyethylene (LDPE) and high-density polyethylene (HDPE) capacity to a combined 950,000 tons.