GULF Development Announces Indicative Interest Rates for Debenture Offering
Gulf Development Public Company Limited (SET: GULF) has officially announced the indicative interest rates for three distinct tranches of its upcoming name-registered, unsubordinated, unsecured debentures, demonstrating strong financial stability.
The company, through its Chief Financial Officer, Yupapin Wangviwat, confirmed the planned offering to the general public.
The second series of debentures, featuring a maturity term of 5 years, is set to offer a fixed annual interest rate ranging between 1.96% and 2.16%.
The third series, with a longer 7-year term, will carry a fixed rate from 2.20% to 2.50% per annum, while the longest tranche, the fourth series, with a 10-year maturity, offers a fixed rate between 2.37% and 2.67% per annum.
The final and confirmed interest rates are scheduled to be announced to the market in mid-September 2025.
This announced range of interest rates is fully aligned with the company’s strong credit rating and debenture rating of AA- with a ‘Stable’ outlook, reinforcing investor confidence, especially for those searching for stable long-term returns in an economic environment facing lingering challenges and a downward trend in general interest rates.
GULF’s market position has been substantially strengthened following its strategic merger with INTUCH, making this debt offering a particularly attractive opportunity for investors seeking robust returns from a highly stable and diversified company.
The total size of this significant GULF debenture issuance is expected to be approximately THB 30 billion, which a financial source revealed is projected to reduce the company’s annual interest costs by a substantial amount, estimated at around THB 400 million.
Exceptional Financial Health and Diversified Business Empire
GULF reported exceptional financial health in the second quarter of 2025 and operates a widely diversified business portfolio spanning critical sectors, from energy and infrastructure to telecommunications and digital assets.
For the second quarter of 2025 (April–June), GULF reported strong operational and financial growth figures.
Total revenue reached THB 40,617 million, marking a significant increase of 24.5% compared to the same period last year (based on pro forma consolidated financial data).
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood robustly at THB 13,432 million, showing a 21.2% year-over-year growth, while the core profit came to THB 7,101 million, a remarkable 26.5% year-over-year increase.
As of June 30, 2025, GULF’s total assets amounted to THB 742,205 million, total liabilities were THB 396,105 million, and total equity stood strong at THB 346,100 million.
Crucially, the company’s net interest-bearing debt (including lease liabilities) to equity ratio is exceptionally low at 0.87 times, maintaining a very comfortable distance below the debenture covenant threshold of 3.5 times, signaling prudent financial management and capacity.
GULF operates as a holding company with deep interests across several vital sectors: it is a leading private power producer in Thailand, operating power plants based on natural gas and renewables; it is involved in gas procurement, import, and distribution, which are essential for national energy security; it holds assets in infrastructure and logistics focused on major economic development; and it is a key player in telecommunications and satellite businesses.
Market Reception and Commitment to Governance and Sustainability
The announced debenture rates are being met with positive market reception, reflecting GULF’s robust corporate governance and deep commitment to sustainable development and investor relations.
The company expects to open the public sales period for the debentures between September 30 and October 1–2, 2025, with a long list of major institutions acting as lead managers.
Bualuang Securities noted that the indicative interest rate range (1.96–2.67%) is noticeably lower than the rates offered in GULF’s earlier debenture issuances this year, a fact that clearly reflects a continued drop in the company’s borrowing costs.
This positive trend could prompt financial analysts and the broader market to revise downward their assumptions for GULF’s cost of debt, with initial estimates suggesting a potential upside of approximately 1% for long-term profit forecasts.
Furthermore, GULF maintains exceptionally high standards of corporate governance and sustainable development.
The company received an ‘Excellent’ CG Score for 2024 from the Thai Institute of Directors, was included in the S&P Global Sustainability Yearbook 2024 for the Electric Utilities Industry, and was selected for the prestigious FTSE4Good Index Series.
The company also recently claimed four major honors at the 15th Asian Excellence Award 2025 hosted by Hong Kong’s Corporate Governance Asia magazine, securing awards for Asia’s Best CEO, Asia’s Best CFO, Sustainable Asia Award, and Best Investor Relations Company (Thailand), highlighting its leadership and transparency among Thai listed companies.
