BANGKOK: CP All PCL, Thailand's largest convenience store chain, said on Tuesday it plans to raise 18 billion baht ($552 million) through a bond offer in March to refinance existing debt and reduce interest expenses.
CP All, controlled by billionaire Dhanin Chareavanont's Charoen Pokphand Group, is the retailer with the most net debt in Southeast Asia as it took on a $5.8 billion loan two years ago to finance the takeover of cash-and-carry wholesaler Siam Makro.
CP All, which was debt free until the $6.6 billion acquisition, has since early 2014 issued bonds worth 140 billion baht to refinance its debt, Kriengchai Boonpoapichart, head of finance and investor relations, told reporters.
"Our financial cost is average at 5 percent and we want to bring it down gradually to below the level," Kriengchai said.
The March bond offer comprises a two-year tranche offering yields of 3.55 percent and 4.1 percent yields for a five-year tranche, the company said in a statement.
CP All's net debt to equity ratio stood at 4.7 in 2014 versus 5 in 2013. The company has said it plans to reduce the ratio to 2 in 2017.
CP All, which plans to spend 9 billion baht on expanding its store network this year, aims to boost revenue 10 percent revenue this year on an expected improvement in domestic consumption and the economy, Kreignchai said.
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