Advanced Info Service Public Company Limited (AIS), a leading provider of telecommunications services and digital infrastructure in Thailand, with a customer base of over 50 million, is preparing to issue its first ‘Sustainability Bonds’ in the Thai telecommunications sector. These bonds will have terms of 4 and 7 years and will be available for subscription to general investors from November 8 and 11-12, 2024.
AIS believes this bond offering will provide investment opportunities in a stable, growing company that is committed to sustainable development. With a “AAA(tha)” credit rating (Watch negative) from Fitch Ratings (Thailand) as of September 4, 2024, the bond reflects the company’s strong business operations and stable financial position. The issuance will be managed by seven leading financial institutions: Bangkok Bank, KASIKORNBANK, Krung Thai Bank, Siam Commercial Bank, Bank of Ayudhya, United Overseas Bank (Thai), and Kiatnakin Phatra Securities.Montri Khongkruephan, Chief Finance Officer of AIS, announced that the issuance of sustainability bonds will support AIS’s vision of becoming a Cognitive Tech-Co, in line with Thailand’s Sustainable Nation initiative. This initiative focuses on promoting sustainable growth through an ECOSYSTEM ECONOMY, benefiting people, society, the economy, and the environment in the digital era. AIS aims to further develop its digital infrastructure, including its 5G network, which already covers over 95% of the population, and broadband services accessible to 13.3 million households nationwide. Additionally, AIS is enhancing digital platforms for businesses across key sectors.
The primary goal of this bond issuance is to fund projects that focus on energy efficiency and expanding 5G access, especially in remote areas. The sustainability bonds will be offered to the general public in two series with terms of 4 and 7 years, providing flexibility for different investors. Interest payments will be made every six months, with a minimum subscription of 100,000 baht, and details on interest rates will be provided later. Montri expressed confidence that these bonds will attract investors interested in one of Thailand’s most stable companies.
In the first half of 2024, AIS reported a primary service revenue of 79,665 million baht, an 18% increase compared to the previous year. This growth was driven by a 4% rise in mobile service revenue due to increased data usage and the recovery of tourism. The fixed-broadband sector saw impressive growth of 159%, fueled by TTTBB revenue recognition and expansion into new areas, as well as an increase in ARPU from bundled content services. Enterprise services also grew by 33% thanks to rising demand for digital communication and cloud services. AIS’s EBITDA rose by 21% year-on-year, reflecting strong operational performance and the impact of TTTBB. Net profit for the first half of 2024 was 17,028 million baht, a 22% increase compared to last year, driven by improved operations and profit-sharing from 3BBIF.
Montri emphasized AIS’s commitment to sustainable business, aiming to foster growth in three areas: driving the digital economy, promoting digital inclusion, and acting on climate change. AIS is focused on supporting Thailand’s digital economy, promoting the responsible and creative use of technology, and reducing its environmental impact. This includes managing supply chains to reduce emissions, recycling waste, and promoting proper e-waste disposal. These efforts align with AIS’s long-term goal of thriving in a greener, more inclusive digital world.
Fitch Ratings affirms AIS’s strong position in the mobile business, with a 48% revenue market share, and expects further stable growth as competition in Thailand’s mobile sector remains rational.
AIS is currently in the process of filing its registration for the bond issuance with the Securities and Exchange Commission (SEC). Investors can find more information on the SEC website or through the seven financial institutions managing the issuance, including Bangkok Bank, KASIKORNBANK, Krungthai Bank, Siam Commercial Bank, Bank of Ayudhya, UOB Bank, and Kiatnakin Phatra Securities.
