Brokers' take

Thai Beverage > Buy DBS Group Research, March 23 March 23 close: S$0.805 Fair value: S$1.02

THAI Beverage (ThaiBev) announced that it has issued 50 billion baht (THB) in debentures. The debentures have various terms from two years to 10 years, with fixed coupon rates ranging from 1.79 per cent to 3.6 per cent, implying weighted average rates of 2.83 per cent and an average tenor of just over six years.

The seven-year and 10-year debentures (maturing in 2025 and 2028, respectively) are structured with a call option granting ThaiBev early redemption rights starting from the fifth anniversary, but carries a redemption fee of 0.2 per cent of the principal amount.