Mitihoon – Advanced Info Service Public Company Limited (AIS) today announced the successful issuance of USD 1 billion in U.S. dollar-denominated bonds, which attracted strong investor demand with total orderbook exceeding USD 5 billion, or more than 5x over subscription. The bonds were priced at the lowest credit spread ever achieved for USD bond issuances by a Thai corporate and by an Asian telecommunications company (ex-Japan) within the same credit rating. In addition, the 10-year tranche achieved the lowest credit spread in the past 31 years for USD bonds issued by Asian telecommunications companies (ex-Japan) within the same credit rating. These milestones highlight AIS’s strong financial position and robust cash flow generation. The issuance further strengthens AIS’s financial position by broadening its global debt investor base, with participation from institutional investors across Europe and Asia. The strong demand underscores investor confidence in AIS’s growth prospects and financial strength at the international level.
The bonds are issued in two tranches: a 5-year tenor with an interest rate of 4.260% and a 10-year tenor with an interest rate of 4.894% The bonds will be listed on the Singapore Exchange (SGX) and the proceeds will be used for general corporate purposes. AIS will enter into Cross Currency Swap agreements to convert the principal and interest obligations of the bonds into Thai baht throughout the bonds duration. This transaction will help mitigate further foreign exchange and interest rate risks while maintaining interest costs in line with domestic funding sources. As a result, the Company expects to maintain its average cost of debt at approximately 2.7%–2.8%, similar to the current level.
The bonds have been rated a BBB+ credit rating by Standard & Poor’s Rating Services (S&P), which is within the Investment Grade Rating, reflecting AIS’s strong financial position and solid debt servicing capability. Following the bond issuance, AIS is expected to maintain its net debt-to-EBITDA ratio within the range of 2.5x, underscoring its continued financial strength and effective debt servicing capacity, while maintaining flexibility to support future growth opportunities.
Tee Seeumpornroj, Deputy Chief Executive Officer and Chief Financial Officer of AIS, stated: “This bond issuance marks a significant milestone in managing the capital structure in line with investment plans and long-term business direction. It strengthens our capacity to sustainably expand investment in digital infrastructure over the long term.
As a leading digital telecommunications company, AIS has evolved from a telecom network operator into a provider of Intelligent Digital Infrastructure, encompassing the expansion of 5G networks, fixed broadband services, as well as investments in new growth areas such as data centers, cloud, and digital services. These initiatives are designed to serve both B2C and B2B customers as Thailand accelerates its transition toward a digital economy and society.
The USD bond offering equivalent to THB 31 billion received strong interest from international investors, reflecting AIS’s internationally recognized financial strength.
Key highlights of the transaction include:
- Total orderbook exceeded THB 150 billion, representing more than 5x over subscription
- The issuance represents the largest size of USD bond offering by an Asian telecommunications company (ex-Japan) since 2020.
- The bonds achieved the lowest credit spread ever for U.S. dollar bonds issued by a Thai issuer and by an Asian telecommunications company (ex-Japan) within the same credit rating.
- The 10-year tranche recorded the lowest credit spread in the past 31 years for USD bonds issued by Asian telecommunications companies (ex-Japan) within the same credit rating.
These results reflect AIS’s strong financial position and robust cash flow generation. The transaction also helps diversify the Company’s funding sources into international markets, broaden its bond investor base, and enhance flexibility in cash flow management. AIS remains committed to prudent financial management to reinforce our strong financial foundation, support future growth, and contribute to the sustainable development of Thailand’s digital infrastructure”
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