Gulf Development Plc, Thailand's largest energy company by market value and a major telecom operator, has secured a US$600-million loan from international banks, enhancing its global funding options.
The company reported the syndicated term loan attracted more international lenders than expected.
Launched in May at $400 million with three- and five-year loan options, the deal drew strong backing from Gulf's partner banks and attracted interest from a broad group of lenders, including several institutions establishing lending relationships with Gulf for the first time.
At closing, the deal united 33 banks and drew demand roughly four times higher than the original size, allowing Gulf to add $200 million for a total of $600 million.
The term loan facility attracted participation from a diverse group of financial institutions from Japan, Taiwan, Singapore, China, Hong Kong, the Philippines, India, Macau and France, supported by Gulf's longstanding relationships with Japanese and Chinese partners, suppliers, and engineering, procurement and contraction contractors across its projects.
Gulf said the response reflects lenders' confidence in the company's robust financial position, disciplined capital management, stable cash flow generation, and proven track record in developing and operating large-scale energy and infrastructure projects.
In addition, Gulf noted its ability to capture future growth opportunities beyond its traditional businesses.
"The successful completion of this facility represents an important milestone in Gulf's funding strategy, expanding our access to international markets and further diversifying our sources of financing," said Yupapin Wangviwat, chief financial officer of Gulf.
Banks made commitments reaching nearly four times the initial facility size at peak demand, reflecting lenders' confidence in Gulf's financial strength, operational track record and long-term growth strategy, she said.
Gulf touts an A credit rating with a stable outlook from the Japan Credit Rating Agency, equivalent to Thailand's sovereign rating.
"The transaction strengthens our relationships with banking partners, establishes new partnerships with international lenders and enhances our financial flexibility by providing an additional funding source beyond the domestic baht bond market," said Ms Yupapin.
