Sole bookrunner Citigroup led the company through a successful Bt2.5 billion ($78 million) two-year note, ôirrevocably and unconditionally guaranteedö by DaimlerChrysler AG û the parent company in Germany.
The bond priced at par to yield a coupon of 4.51%, offering a 60bp pick-up over the interpolated baht two-year government-bond yield of 3.91%. The bond was rated AA by Fitch Rating Thailand, while guarantor ratings stood at BBB, Baa1, and BBB+.
DaimlerChrysler issued into a reasonably stable climate. Despite dampening domestic consumption and investment, ThailandÆs stable outlook by MoodyÆs has not been jeopardised by the change of government. ThailandÆs National Economic and Social Development Board has reported a rise of 4.7% of real GDP due to strong export performance, while MoodyÆs forecasts annual growth of 4%-5% for 2007.
The note issue, which is the companyÆs first deal in baht since 2004 when it issued a three-year Bt2 billion bond with a coupon of 3.82%, was offered through a bookbuilding process. Notes were allocated to over 15 onshore investors, with 60% of the bonds sold to private, provident and pension funds, 30% to mutual funds, and 10% to banks and insurance companies.
The proceeds are to be used for general corporate purposes.
DaimlerChrysler (Thailand) Ltd is a subsidiary of the automotive, transportation and service company DaimlerChrysler AG. The company handles import and wholesale businesses for Mercedes-Benz and Chrysler in Thailand.
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