An Escape Route for CP from Interest Rate Hikes
Subsidiaries of CP Group have announced that they will issue a total of ฿41,246 million debentures to be offered within this month. Is it a sign that the banks will raise interest loan rates soon?
17 ม.ค. 2562

The signal for interest rate hike seems to be more evident, even though all the banks are waiting to strike a preemptive hike for on both deposit interest rates and loan interest rates soon. It is so obvious that Mr. Dhanin Chearavanont, Senior Chairman of CP Group, has noticed the signal and decided to make a move.
CP Group always being pressured when it comes to profit due to a tremendous amount of loan the company has made. The situation will get even worse if the interest rates are to be raised.
Which is why three companies under CP Group planned to issue a total of ฿41,246 million debentures for institutions and major investors within this month.
 
CP ALL Public Company Limited (CPALL) issued a total of four series. 1) A debenture not exceeding ฿15,000 million that matures in three years with a fixed interest rate at 2.86% per annum. 2) A debenture not exceeding ฿3,500 million that matures in eight years with a fixed interest rate at 3.95% per annum. 3) A debenture not exceeding ฿3,000 million that matures in 10 years with a fixed interest rate at 4.12% per annum. 4) A debenture not exceeding ฿6,500 million that matures in 12 years with a fixed interest rate at 4.40% per annum.
All four series of debentures will be offered to institutions on January 15-17, 2019, with an A(stable) rating.
 
True Move H Universal Communication Co., Ltd. offered two series. 1) A debenture not exceeding ฿7,000 million that matures in two years with a fixed interest rate at 3.8% per annum. 2) A debenture not exceeding ฿13,000 million that matures in five years with a fixed interest rate at 5.1% per annum.
All two series of debentures will be offered to institutions and major investors on January 21-23, 2019, with a BBB(stable) rating.
 
True Corporation Public Company Limited (TRUE) issued one debenture not exceeding ฿12,246 million that matures in three years with a fixed interest rate at 4.10% per annum. The debenture will be offered to institutions and major investors on January 28-30, 2019, with a BBB+(stable) rating.
 
This sudden transformations in CP Group may have sent some signal to investors that the interest loan rates could be on a hike soon, which caused the company to issue debentures, so that the company is able to use that amount to refinance its loans.
Judging from the date and time that CP Group had made the move, it can be implied that the banks may be considering an increase in interest loan rates around February.
 