Thai Oil Public Company Limited (“Thaioil” or the “Company”) announced the successful issuance of a U.S. dollar–denominated Perpetual Bond, an equity-like instrument, with an aggregate principal amount of USD 600 million. The offering was met with exceptionally strong demand and was significantly oversubscribed. Proceeds from the issuance will be utilized to support the Company’s Clean Fuel Project (CFP) and to further strengthen its long-term financial stability.
On 15 January 2026, Thai Oil Public Company Limited, led by Ms. Wanida Boonpiraks, Executive Vice President – Finance and Accounting, announced the successful launch of the Company’s U.S. dollar–denominated Perpetual Bond. This transaction represents the first Perpetual Bond issuance by a Thai company in 2026 and received a highly favorable response from global investors. The funds raised will primarily be allocated to support the Company’s investment programs, particularly the Clean Fuel Project (CFP).
The Perpetual Bond has been assigned a credit rating of BB- by S&P Global Ratings and Ba2 by Moody’s Investors Service. In addition, Thaioil’s issuer credit ratings remain at investment grade, with Moody’s Investors Service assigning a rating of Baa3 (Negative Outlook) and S&P Global Ratings assigning a rating of BBB- (Negative Outlook). The Perpetual Bond bears an interest rate of 6.10% per annum for the first 5.25 years, after which the interest rate will be reset in accordance with the terms and conditions set forth in the offering documentation.
The offering attracted substantial interest from investors worldwide, with total subscriptions exceeding USD 6.5 billion, or approximately 11 times the offering size. The final allocation closed at 10.33 times oversubscription. This strong investor response underscores confidence in the Company’s credit profile, financial discipline, and long-term growth prospects. The issuance and distribution of the Perpetual Bond were jointly arranged by BNP Paribas, BofA Securities, Deutsche Bank, HSBC, Mizuho, and Standard Chartered Bank.
In addition, the Company has implemented foreign exchange risk management measures through a cross-currency swap, converting the U.S. dollar-denominated Perpetual Bond into Thai baht. As a result, the effective cost of funds in Thai baht is approximately 3.875% per annum, thereby enhancing capital efficiency and optimizing the Company’s financial structure. Furthermore, this fundraising represents one of the lowest funding costs achieved for a U.S. dollar bond issuance by the Company amid prevailing economic pressures in Thailand and the global economy.
The issuance of the Perpetual Bond is fully aligned with the Company’s financial strategy to support investments in the Clean Fuel Project while maintaining a strong and appropriate capital structure, reinforcing Thaioil’s commitment to sustainable long-term growth.
